Catch up with all the latest Liverpool transfer news and rumors, with updates on Real Madrid defender Trent Alexander-Arnold and a potential exit for Florian Wirtz

Liverpool is continuing to prepare for the next transfer window, with the January market just a couple of months away from opening for business.

So far, the Reds have been adjusting to life under Andoni Iraola, showing some positive signs of improvement — beating Villarreal 4-3 in midweek — as well as areas that will need further changes. That could come from switches the manager makes to get the most out of the options at his disposal, but it could also come from moves made in the coming transfer windows.

So, with that said, here's a look at the latest Liverpool transfer news and rumors ahead of another busy day of action on Merseyside.

Trent Alexander-Arnold (Real Madrid)

Trent Alexander-Arnold continues to be linked with an exit from Real Madrid, after a difficult start to the new season with the Spanish outfit, prompting rumors surrounding a return to Liverpool.

However, another Premier League team could be in the mix. According to Chelsea source Simon Phillips, the Blues have shortlisted the England international as a potential option as the club looks for new right-backs.

With Malo Gusto set for an exit, Reece James suffering from injuries, and the likes of Marco Palestra and Pedro Neto still adjusting to a wing-back position, the interest in right-backs comes as another option to feature there.

Alexander-Arnold featured briefly for Xabi Alonso at Real Madrid, which could line up a potential reunion, amid links with a return to Liverpool.

Liverpool.com says: If Liverpool fans were left frustrated by Alexander-Arnold moving to Real Madrid, a potential switch to Chelsea wouldn't go down well either.

Considering the Reds have struggled at right-back, making sure that a return is on the cards for the 27-year-old should be a top priority if he is available.

Florian Wirtz (Liverpool)

Speaking of Chelsea, TeamTalk has reported that the club has emerged as a potential destination for Liverpool ace Florian Wirtz in the near future.

It's claimed that Alonso has asked the Blues to monitor the playmaker's situation, and while it is not an active pursuit, there could be decisive action if he becomes available.

That will depend on Liverpool opening the doors to an exit, but Chelsea's interest is seemingly lurking in the background.