Real Madrid have reported pulled out of the race for Liverpool target Marc Guehi(Image: Warren Little, Getty Images)

Real Madrid have reportedly dropped their interest in Crystal Palace defender Marc Guehi as the January transfer window looms. Guehi, one of Europe's most sought-after players, is set to leave Palace in 2026, but it appears Madrid won't be his next stop.

The England ace was on the brink of a move to Liverpool on transfer deadline day, only for Palace chairman Steve Parish to halt proceedings at the eleventh hour. His £35million switch fell through and the Reds remain eager to secure the 26-year-old's services to strengthen Arne Slot's backline.

They still face competition from the continent, with Bayern Munich and Barcelona also monitoring the situation. The European powerhouses have the upper hand as they can negotiate a free summer transfer with Guehi come January, but the centre-back was only too willing to move to Anfield in the summer.