The English source report that Illarremendi—who has struggled to establish himself in the first team at Real—had hoped that Carlo Ancelotti’s departure and his compatriot Benitez’s arrival might have allowed him the opportunity to feature more regularly for the Merengues.
However, the former Real Sociedad man—who has made 90 appearances for the Blancos over the last two seasons, despite never nailing down a first-team berth—has now been told that he can leave the Spanish capital.
The information will likely come as good news for Liverpool, with the Metro reporting that the Merseysiders have already made an offer for the 25-year-old.
It remains to be seen whether the existing deal will be accepted by Real, although they appear keen to offload the player, meaning that sooner rather than later, Liverpool may get their man.
Illarramendi—who offers both competent passing skills and grit—could go someway to replacing Reds talisman Steven Gerrard, who departed for Los Angeles Galaxy at the end of the season.
However, he will likely have to compete for a starting spot in the midfield with the likes of Emre Can, James Milner, Jordan Henderson and Joe Allen.
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Liverpool transfer rumours
The news from Madrid may see Lucas Leiva pushed closer to the exit door at Anfield.
The Gazzetta dello Sport report that Milan and Liverpool are set for talks over a transfer for the experienced Brazilian campaigner, with the 28-year-old having slipped down the pecking order on Merseyside.