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Liverpool handed dream Marc Guehi transfer boost after'impossible'Real Madrid situation

Liverpool are keen to sign Crystal Palace defender Marc Guehi, who will leave the club in 2026, while Real Madrid have also been tracking the England international

Real Madrid have reported pulled out of the race for Liverpool target Marc Guehi

Real Madrid have reported pulled out of the race for Liverpool target Marc Guehi

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Real Madrid have reportedly dropped their interest in Crystal Palace defender Marc Guehi as the January transfer window looms. Guehi, one of Europe's most sought-after players, is set to leave Palace in 2026, but it appears Madrid won't be his next stop.

The England ace was on the brink of a move to Liverpool on transfer deadline day, only for Palace chairman Steve Parish to halt proceedings at the eleventh hour. His £35million switch fell through and the Reds remain eager to secure the 26-year-old's services to strengthen Arne Slot's backline.

They still face competition from the continent, with Bayern Munich and Barcelona also monitoring the situation. The European powerhouses have the upper hand as they can negotiate a free summer transfer with Guehi come January, but the centre-back was only too willing to move to Anfield in the summer.

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Real had been linked with Guehi, whose contract expires on June 30, making him an attractive option for any club in need of a new centre-back. Despite being available on a free transfer next summer, the financial implications have reportedly deterred Xabi Alonso's team.

AS reports that Guehi's wages and the signing-on fee make it an 'impossible' deal for Real. The Spanish titans shelled out £50m to bring Dean Huijsen from Bournemouth in the summer and don't have the funds to accommodate Guehi as well.

This leaves Bayern as Liverpool's main competition for Guehi. They are aware that they could lose Dayot Upamecano at the end of the season, with his contract due to expire, and could move for Guehi.

Sporting director Christoph Freund has spoken to Palace manager Oliver Glasner about Guehi, while director of sport Max Eberl has already met with his representatives in Munich. Bayern would be open to making a move for him even if Liverpool target Upamecano signs a new deal.

Palace chairman Parish has hinted that the club would rather let him go for free in the summer, instead of selling him in January to earn a fee but risk disrupting Glasner's team mid-season. "We needed to keep Marc because the difference between us having a stellar season and having a relegation-threatened season is us winning five games or not," Parish told Men in Blazers recently.

"So the margins in the Premier League are very tight and you have to remember that Michael [Olise] has gone, we're OK, Ebbs (Eberechi Eze) has gone, we're OK, Wilfred [Zaha] went, we're OK. There's a limit to how much you can keep doing that before you break down the fabric of the team."

Parish added: "Marc was great about it as a person. Liverpool made the offer. It was a massive club, he was obviously interested in going. But he was fine about it, staying, if that was the decision we made. Obviously it means all of the ball is in his court tremendously as a player and he's got the choice of wherever he wants to go."

Liverpool are in need of defensive reinforcements following the loss of summer recruit Giovanni Leoni to an ACL injury. The setback leaves Joe Gomez as the sole experienced alternative to Virgil van Dijk and Ibrahima Konate, but Slot has suggested that pursuing Guehi in January isn't the club's favoured approach.

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