Liverpool look ready to complete the signing of Xabi Alonso, a story we first brought to you one month ago. But it is believed Manchester United could be ready to destroy Liverpool's dream of signing Spanish wonderkid Xabi Alonso, and taking the midfielder to Old Trafford instead.

Alex Ferguson is a keen admirer of the player, and with Roy Keane approaching the twilight of his career, is looking for someone to bolster the midfield.

Alex Ferguson was chasing the Spanish midfielder last pre-season. He spoke in these terms only last summer:

"Alonso is definitely one I’d take. His contract runs until 2007 but we have been told there is a £20m buy-out clause," said Ferguson.

"But we understand that Madrid have offered a down payment of £10m and that they are prepared to let him stay at Sociedad next season."

This didn't happen, and £10 million may look more reasonable to Man United now.

If United plc do enter the bidding war, then Rafael Benitez will have to show all his powers of persuasion to keep the Spaniard Anfield bound.

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