Spanish giants drawn to McManaman impasse

Liverpool will continue negotiations with midfielder Steve McManaman over a new contract after English press reports stated that European champions Real Madrid would bid to take the player from Anfield if his contract expired without a new deal in place.

The England player is hoping to use the Bosman ruling to walk out on Liverpool if they fail to meet his wage demands of £55,000 a week and knows that Liverpool would lose any transfer value for the player if a new deal is delayed.

FC Barcelona came close to signing McManaman late last years and are still interested. They were prepared to pay £12 million but it looks likely that he will soon be available for free unless he accepts Liverpool's wage offer. The Premiership club are facing a similar situation with striker robbie Fowler who will be recalled to the England squad next month after a year's absence. Arsenal are hoping to sign Fowler under the Busman rule but may be prepared to pay a massive transfer fee to get the player if their striking problems continue.