Xabi Alonso's transfer to Real Madrid is on the verge of collapse following the words of club president Florentino Perez, who said that Liverpool's asking price of 32 million pounds was too high and that the Merseysiders have "lost sense of reality," Times of London said.

Perez, who immediately upon embarking on his new post went on a shopping spree, spending 94 million euro on Cristiano Ronaldo and 65 million euro on Kaka, has said that Liverpool's valuation of Alonso was 'abnormal'. Perez wants Liverpool to lower their asking price for the player, and has reportedly asked the same of Valencia in the case of David Villa, another transfer target.

Liverpool manager Rafael Benitez has refused to flinch, insisting Alonso was worth every penny, but Perez is unconvinced. "Some people obviously thought that because we said we wanted more Spanish players, they could ask for fees which don't correspond to reality," Perez said, as quoted by The Guardian.

Meanwhile, Rafael Benítez has turned on the screws on Xabi Alonso, as the club and supporters are starting to lose their patience over the entire transfer saga. In a tactical manoeuvre, Benitez made it clear that a transfer would only be pursued at the player's request.

Following Liverpool's 5–0 victory over Singapore, the Liverpool manager has distanced himself from any guilt or blame that could be generated from the sale of Alonso, saying: "It's a question that you have to ask him. Honestly, we've been talking about this for two months but I think that it is a question for him and not for us."

"He has three years on his contract and we know he is a great player - that's why we signed him and renewed his contract. So you have to ask him," Benitez said, as quoted by the Liverpool website.