Borussia Dortmund and Germany centre-back Nico Schlotterbeck, 26, has a release clause of about £43m-£52m which only applies to three clubs - including Liverpool and Real Madrid, but not Bayern Munich.

Real Madrid could still sign Borussia Dortmund defender Nico Schlotterbeck, 26, despite the Germany defender having signed a new contract with the Bundesliga side.

Arsenal, Chelsea, Liverpool, Manchester United, Newcastle, Barcelona and Real Madrid are all linked with a summer move for highly rated Netherlands and AZ Alkmaar midfielder Kees Smit, 20.

Arsenal are looking to strengthen in defence this summer, with Real Madrid's Spanish defender Victor Valdepenas, 19, and Como's Spain Under-21 centre-back Jacobo Ramon, 21, among the targets.

Liverpool are on red alert with Real Madrid now open to selling France midfielder Eduardo Camavinga, 23, who is a long-term target for the Reds.