Athletic Bilbao's 21-year-old midfield star Javier "Javi" Martinez is said to be the subject of interest from Liverpool FC and Spanish giant Real Madrid, reports in Spain indicate.

The 6'3" midfielder has been amidst a storm of transfer speculation after a promising season in La Liga which prompted his inclusion in Spain's World Cup squad.

Reds gaffer Rafael Benitez is said to be keen on the former Osasuna player and is ready to bid in excess of £12 million to secure his services.

Real Madrid may trump the cash-strapped Anfield club with a £25 million bid which would trigger the player's automatic release clause.

It is understood that the Merseyside outfit view Martinez as a long-term replacement for Xabi Alonso, who currently plays for Real Madrid, while the latter want the former Spain U21 star to play alongside Alonso at the Santiago Bernabeu.