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Liverpool are to receive a crushing blow in their hopes of making Marco Reus their new record signing with Real Madrid set to beat them to the signature of the German international.

After pocketing a fee that could eventually reach £49million for Raheem Sterling, the Reds were eager to immediately reinvest their windfall on the Borussia Dortmund ace.

Brendan Rodgers has been plotting a gargantuan £46million deal for the 26-year-old but bein Sports claim the Spanish giants Real Madrid have pipped ahead of the Reds and arch rivals Barcelona in the queue for his signature.

Reus is one of Europe’s hottest properties despite struggling with injuries last season and other top Premier League sides Chelsea, Manchester United and Arsenal have also been monitoring his situation.

He scored 11 goals in 29 appearances during the 2014/15 campaign and has netted nine times in 25 outings for the German national side.

Dortmund confirmed today that Reus has picked up another injury during a training session but they are not expecting a long lay-off.

Their statement read: “Marco Reus has a slight ligament problem. It’s nothing serious.”

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The Daily Mail say that Liverpool striker Rickie Lambert will enter negotiations with West Bromwich Albion this week after being given permission to talk to other clubs by the Reds.

The Baggies are offering around £3million for 33-year-old England international but Anfield chiefs are hoping to get a figure of closer to £4.5million.

The lifelong Red made a dream move back to Merseyside last summer but it quickly turned into a nightmare as he struggled for minutes and netted just three times in 36 outings.

Lambert is still desperate to succeed at Anfield but the lure of regular first team football is expected to be the key to the deal for a player who could have joined Aston Villa in January but decided to stay.

Lazio are preparing to hold talks with Liverpool defender Mamadou Sakho, according to La Lazio Siamo Noi.

The French international, who cost the Reds £18million, is reportedly wanted on a loan deal with a view to a permanent move.

He has two years left on his deal at Anfield, but his agent is apparently due to meet the Serie A club this week.

Sakho is currently locked in a battle with Dejan Lovren to partner Martin Skrtel at the heart of the Reds defence.

Reds transfer tracker