Estádio da Luz star looks to be heading to the Bernabeu and not Anfield.
Real Madrid have agreed a fee with Benfica over defender Fabio Coentrao snatching him from under the noses of Liverpool.
Correio da Manha reports the 23-year-old has agreed in principle to joining the La Liga giants despite the Reds being strong favourites to capture his signature.
The Portugal international will join Jose Mourinho’s side and compete with Brazilian Marcelo for the left-back position.
Liverpool’s search for a left sided defender will continue. The acquisition of a long-term replacement for Paul Konchesky has been identified as a priority for the Anfield club.
With Fabio Aurelio unable to stay fit, Glen Johnson has been forced to play there as emergency cover.
The Reds have been linked with Taye Taiwo but he joined AC Milan, and with Coentrao deciding on Madrid, options are looking thin.
Arsenal’s Gael Clichy is a name that has been linked with Liverpool but it is unlikely manager Arsene Wenger will allow him to leave for a Premier League rival.