Liverpool Transfer News: Mega Isco Bid Reportedly Eyed, Xherdan Shaqiri Latest

Real Madrid's Isco is enjoying the finest spell of his career in the Spanish capital to date, but according to the latest reports, that won't stop Liverpool from countering a massive offer from Manchester City for the Spain international in the January transfer window.

The Daily Express' Anthony Chapman knows City are still looking into signing the 22-year-old, but the Reds and Arsenal will rival the defending Premier League champions as they try to persuade the Champions League holders with a whopping £40 million bid.

Liverpool and Arsenal both enquired about the playmaker's availability during the summer, per Chapman, with Carlo Ancelotti making it very clear the former Malaga man isn't for sale.

Isco has impressed greatly in the past few weeks, filling in for the injured Gareth Bale. Following the news Luka Modric will miss at least the rest of the calendar year with a thigh injury, as shared by FIFA.com, the Spaniard's minutes will only likely go up:

While Isco has always played in a more advanced role compared to his Croatian team-mate, who acts as a deep playmaker, Ancelotti has previously stated he wants to try the youngster from a deeper position. ESPN FC's Nicholas Rigg cannot think of a better time than now:

"

Before Madrid's last match, a 5-1 victory over Rayo Vallecano that made it 13 straight wins for the European champions, the Italian [Ancelotti] was asked about his plans for in-form Isco given Gareth Bale's return from injury. "From time to time he can play as a central midfielder in place of [Toni] Kroos or [Luka] Modric," he said. "I'm thinking about playing him further back because he can do the defensive work he's going on the flank as a central midfielder too."

In place of Modric, you say? Step forward Isco.

"

Real Madrid TV's Phil Kitromilides echoed the same sentiment:

Liverpool's interest during the summer stemmed from the fact Isco had hardly been utilised during the 2013-14 season, and the arrival of James Rodriguez appeared to signal his chances of becoming a regular starter for Los Blancos were all but gone.

The situation has changed dramatically in the past two months, however. With Modric likely out until the end of the January window, Real will be very reluctant to part with the budding star, even for an offer as substantial as £40 million.

Much will depend on how Isco adapts to his new role in the next few weeks. With Sami Khedira and Asier Illarramendi waiting for their chance, one or two poor performances could see Isco move back to the bench, opening the door for a potential exit in midseason.

Such a scenario looks unlikely, however. Isco looks set to complete the 2014-15 season in the Spanish capital, regardless of how many megabids are offered.

One player who might be leaving his current club in January is Xherdan Shaqiri, with GianlucaDiMarzio.com's David Amoyal reporting strong interest from Serie A for the Bayern Munich winger.

Juventus, AS Roma, Inter Milan and Napoli are all looking into the signature of the 23-year-old, who has made just three Bundesliga starts all season.

The Reds have long been linked with a move for the Swiss international, and he recently confirmed the club made an approach during the summer in an interview with Swiss outlet Blick (h/t London Evening Standard's Tom Collomosse): "After the World Cup I sensed it was better for me to try something else and I wasn't short of offers. Liverpool showed the greatest interest but Bayern decided not to let me go and in the end there was nothing I could do. I have to get on with it – we will meet again in the winter and discuss my situation."

Amoyal believes the Bavarians would rather not commit to a permanent deal, offering the alternative of a loan move with an option to buy. German paper Bild believes the club would be willing to settle for a bid of £20 million, however, via FourFourTwo's Alex Chaffer:

An explosive dribbler with plenty of scoring ability, Shaqiri scored six goals in just 10 Bundesliga starts and seven substitute appearances in 2013-14. Any team struggling for goals would love to add a creative force like the Swiss star, and with Mario Balotelli still struggling, the Reds certainly fall in that category.

Competition for his signature would be fierce should Bayern make him available, but Liverpool's previous interest in Shaqiri's services would certainly give them a leg up the moment the sweepstakes open.

Stats via WhoScored.com unless otherwise noted. 

Follow @ReverschPass