Los Blancos recently entered the fray and are on the verge of making a £40 million offer for the Uruguayan striker, according to David Woods and Duncan Wright of the Daily Star.
While still fighting for every penny, Liverpool have all but accepted that their best player will not be with the club this season.
Suarez has high ambitions and desires the opportunity to compete in Champions League football, something the Reds have not been talented enough to provide for him.
A raucous show of support for Suarez by Liverpool fans during Steven Gerrard’s testimonial on Saturday went unacknowledged by the striker in his brief 30-minute appearance.
Damien Comolli, the man who signed Suarez in 2011, labeled the Reds as a “top-eight side, not top-four like Arsenal,” according to Metro’s James Boylan.
In a show of support for keeping his star player, manager Brendan Rodgers compared Suarez’s worth to that of Gareth Bale. The Tottenham striker is also a target of Madrid and is rumored to be commanding more than £100 million in transfer fees.
One breath later, Rodgers retreated. According to Simon Mullock of the Daily Mirror, he said, “there does come a point, of course. We only want players who are 100 percent committed here.”
Realistically, even with Suarez in top form the Reds are not exactly on the verge of challenging Arsenal and other top clubs this season. And having him out on the pitch with escape on his mind might not provide desirable results.
Losing him will hurt initially, but it is in the club's interests to groom a replacement who actually wants to be at Liverpool.
Even if the Gunners up the ante to £50m or more, letting him slip away to Madrid would be far more palatable than shipping him to a Premier League rival for an extra buck.