xabi-alonsoChelsea and Manchester City are in the hunt again for Liverpool midfielder Xabi Alonso, whose proposed move to Real Madrid has stalled.

The Spanish giants are ready to re-sign former midfielder Esteban Granero for a 10th of Alonso’s £35million asking price.

Granero was sold to Getafe last summer with a buy-back option that expires on July 30.

The 22-year-old’s agent Teo Lazaro was at the Bernabeu on Tuesday to discuss his return with a deal expected to be concluded early next week.

Chelsea and City have been back in touch with Alonso’s agent, having first made contact with him a month ago.

Alonso spoke of his wish to move to the Bernabeu before joining up with the Liverpool squad in Austria on Sunday.

The Spain midfielder watched his club’s defeat by Rapid Vienna before flying to the Far East for the games against Thailand on Wednesday and Singapore on Sunday.

Granero’s signing would not necesarily spell the end of Madrid’s pursuit of Alonso, but it is clear they are looking at other options after failing to drive down Liverpool’s asking price.

Liverpool manager Rafael Benitez refused to be drawn on the future of midfielder Xabi Alonso

Read more on Rafael Benitez conference:Daily Mail