Bayern Munich defender David Alaba has reportedly turned down a lucrative offer from Liverpool to instead sign a pre-contract agreement with Real Madrid.

The in-demand Austria international is set to leave Bayern once his existing deal expires in the summer, ending an 11-season stay with the Bundesliga giants.

Liverpool were previously linked with Alaba, who can play full-back, centre-back or in central midfield, but transfer expert Fabrizio Romano claims on his podcast that Madrid have won the race for his signature.

The decision supposedly comes despite the Reds offering the 28-year-old more money than both Los Blancos and fellow interested club Barcelona.

Alaba has featured 23 times for Bayern in all competitions this season, predominantly in the heart of defence.