Mohamed Salah is "closer than ever" to extending his Liverpool contract after it emerged that Trent Alexander-Arnold has agreed to join Real Madrid.
Reports in Egypt say that Alexander-Arnold's departure has freed up budget to hand Salah a salary that he deems acceptable after several months with little progress in negotiations.
Right-back Alexander-Arnold has been tracked by Madrid for the last two years and it emerged on Monday that he is set to join the Spanish giant, and could potentially even link up with Carlo Ancelotti's squad for the start of this summer's revamped Club World Cup.
Egyptian outlet Masrawy quotes as a source as saying: "Liverpool's management has opened negotiations with Rami Abbas, Mohamed Salah's agent, to renew the Egyptian star's contract with Liverpool for the time being.
"Negotiations between Liverpool and Rami Abbas, Salah's agent, are much more advanced this time than ever before, and the offer presented is higher than any offer made to the player before.
"Alexander-Arnold's imminent departure from Liverpool will be a major factor in Salah's contract renewal, following the reduction of the club's high salaries, allowing the Egyptian star to be given what he desires in his new contract with the Reds."
Salah, Alexander-Arnold and Virgil van Dijk are all into the final year of their current contracts at Anfield, and the club has faced criticism for allowing so many key players' deals to wind down.
In the case of Alexander-Arnold, Liverpool is set to lose an asset that has a market value of $81 million, for nothing, which will have hamper the Reds' chances of signing an adequate replacement for the England international.
Alexander-Arnold is set to pen a five-year contract worth more than $280,000 per week in the Spanish capital, while he will also receive an eight-figure signing-on fee which will be spread over the length of the deal.
Madrid is keen to register Alexander-Arnold in time for for the start of this summer's revamped Club World Cup. A new 32-team version of the competition will take place between June 15 and July 13, with Madrid among the favorites to lift the trophy.
As it stands, Alexander-Arnold will still be contracted to Liverpool by that point, but Madrid is keen to free Alexander-Arnold from his Liverpool contract at the start of June.
FIFA announced last year that that its member associations which have clubs competing in the Club World Cup (for example, the Spanish Football Association for Real Madrid, or the English Football Association for Manchester City) will have the option to open an exceptional registration window from June 1 to June 10.
As things stand, the Premier League's summer transfer window will open on June 12, while La Liga's summer transfer window will open on July 1. However, if both the Premier League and La Liga decide to take advantage of the opportunity to open an exceptional registration window for a 10-day period at the beginning of June, and Madrid and Liverpool can reach an agreement, Alexander-Arnold could join the Spanish club in time for the start of the Club World Cup.
If an agreement is not reached, Alexander-Arnold will be free to join Madrid from July 1, at which point the Spanish club could add him to its squad for the knockout stage of the competition. If Madrid wins its group, which includes Al-Hilal, Pachuca and Red Bull Salzburg, it will play its first knockout game on July 1, which Alexander-Arnold would theoretically be eligible to play in.