Real Madrid Transfer News: Raheem Sterling Latest, Top Rumours Surrounding Club

Real Madrid continue to blitz opponents with frightening power in La Liga, but that hasn't stopped Carlo Ancelotti being linked with a number of impressive starlets as we head toward the January transfer window.

Jose Felix Diaz of Marca believes the Italian could sign a new deal "before the end of 2014," providing him with time to focus on adding to an already formidable squad. Los Blancos are linked with plenty of youth and are willing to "splash the cash to snap up the best prospects," according to Diaz.

Raheem Sterling is certainly one of those. The Liverpool youngster recently distanced himself from a move away from Anfield after revealing he expects a new contract to be offered imminently. 

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"The club has spoken to my representatives and hopefully something can be done really soon," said Sterling, as reported by David Maddock of the Daily Mirror. "Hopefully I can achieve the goals I want to achieve here at Liverpool in years to come."

Sterling's form has dipped recently—he hasn't scored in 11 games for the Reds, per WhoScored.com—but he remains one of football's top prospects, as noted by B/R UK's Sam Tighe:

Following the acquisition of 16-year-old Dutch forward Mink Peeters, per Diaz, Madrid are said to have plucked youngster Marco Asensio away from Mallorca for €3.5 million. These signings arrive after Madrid "switched up their youth scouting policy," according to the aforementioned article, which reports €10 million put aside just for youngsters.

The club are said to only be interested in those who are 16 or above in a bid to overcome the problems Barcelona recently faced when signing underaged talents.

Marca (h/t Kieran Gill of the Daily Mail) recently suggested Norwegian wonderkid Martin Odegaard will have the option of signing a five-year contract when he turns 16 on December 17.

Madrid already have an academy crammed with potential stars, as noted by Spanish football expert Guillem Balague during his chat with B/R UK's Ryan Bailey:

Rumours linking Madrid with a move for Borussia Dortmund star Marcos Reus, as reported by Chisanga Malata in the Daily Star, are likely to end with the Germany international's recent injury. Reus picked up ankle ligament damage on Saturday in Dortmund's draw with Paderborn, per BVB's official website.

Ilkay Gundogan, another injury-prone Dortmund star, recently admitted a similar situation stopped him from moving to the Bernabeu.

He spoke to Turkish TV's TRT1 Stadyum (h/t Cintia Gigato of Marca):

"

Real Madrid made an offer for me but my club rejected it. At that time I still had two more seasons left on my contract. But also, my injury wrecked it all. I wasn't able to play for 14 months. Now I want to look towards the future and make up for lost time with sporting success.

"

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Gundogan admitted he'd "like to play in Spain or England" if he leaves Dortmund, providing Madrid with a situation to monitor. Ancelotti is hardly short on midfield options right now, and if anything, he could use a physical presence to help shore the side up when extra defensive efforts are needed.

Madrid are currently top of La Liga and flying in the Champions League. Fourteen wins in a row have followed their last loss on Sept. 13, highlighting the side as potential challengers across all fronts this season. Ancelotti doesn't need any further costly signings, so it makes perfect sense to invest in players who could soon break into the team.

Few clubs have this luxury heading into the January transfer window, a month which traditionally sees many expensive deals and panic buys occur. Ancelotti's prolonged tenure appears assured right now, meaning any youngsters he can snap up are likely to impact his stay somewhere down the line.