According to a report from Sky Sports Switzerland, he has finally agreed on personal terms with Madrid after protracted negotiations and an agreement in principle was reached in recent weeks, despite Liverpool's repeated attempts to reopen negotiations.
Madrid did have a £20M offer rejected by Liverpool in the January transfer window as the Reds held on to the defender until the end of the season as they chased down the Premier League title. It is claimed that Alexander-Arnold is set to put pen to paper on a lucrative five-year deal worth around £15 million a year compared to his current wage of around £11M per year.
The 26-year-old is currently focused on recovering from an ankle injury and will be hoping to lift the league title one final time before he departs for Spain. He spoke recently about the title chase and how ambitious his teammates are this season in their bid for silverware under manager Arne Slot.
"Every game is almost like a final now," Alexander-Arnold told CNN Sports. "Because a certain other team looks like they're clicking into gear, which means it's going to go down to the wire as usual, which means every game is a must-win, as simple as that.
"That's the way you want it. You want to get pushed and you want to push yourself as far and as hard as you can and test yourself to the limits. Every single game is a must-win. Even a draw feels like a loss, no matter the context of it."