Liverpool Transfer News: Asier Illarramendi, Mario Balotelli Loan Rumours Grow

Real Madrid are hoping to offload midfielder Asier Illarramendi before the end of the summer transfer window, with Liverpool and Arsenal reportedly set to do battle for the Spaniard's services.

According to Marca, the arrival of Mateo Kovacic means Los Blancos are desperate to move both Illarramendi and Lucas Silva, and while the club prefer a permanent solution for the former, they will entertain a loan deal should the right offer fail to materialise.

El Mundo Deportivo (h/t Metro's George Bellshaw) believes both the Reds and Gunners have expressed an interest in the Basque player, along with Athletic Bilbao and former club Real Sociedad.

The 25-year-old moved to the Spanish capital after a fantastic campaign with Sociedad in 2012-13. He was initially regarded as the heir to Xabi Alonso's spot in midfield but had a hard time earning regular minutes, and following the arrivals of Toni Kroos and Silva, his road to the starting XI looked as difficult as ever. Last season he managed to do the most with his limited opportunities, per WhoScored.com:

Often compared to Alonso for both his appearance and playing style, Illarramendi is a smart player who relies on vision and positioning more than just brute strength in the defensive areas. He's also a solid passer of the ball, although he tends to move the ball from sideline to sideline as opposed to attacking the box.

It's easy to forget Illarramendi was fantastic for Real Sociedad back in 2013, and there's a reason Los Blancos splashed the cash in order to bring him to the Bernabeu. The midfielder may have failed to make the grade in the Spanish capital, but he remains a great talent who would be an instant starter for plenty of clubs around the globe.

Ed Malyon of the Daily Mirror believes any transfer for either Illarramendi or Silva has the potential to be a huge steal:

Kovacic actually isn't a direct competitor for Illarramendi―contrary to what many fans seem to believe, he's a pure attacking forward who offers very little defensively, averaging less than two tackles and one interception per match last season, per WhoScored.com―but with Casemiro also performing well during pre-season, Illarramendi's time with Real seems finished, regardless.

The player needs a fresh start more than anything, and if he wishes to make the Spanish squad ahead of Euro 2016, he needs consistent minutes to show his ability. Any team looking for another midfielder would be wise to at least give Los Blancos a call.

As reported by Marca, no club has made a compelling offer for a permanent transfer, so any significant offer should be enough to tempt Real, who may be growing impatient at this point.

Liverpool and Arsenal could both use depth at the holding-midfield position, with the latter in particular desperate to find cover for Francis Coquelin. At Anfield, Illarramendi would battle James Milner and Jordan Henderson for a spot in the starting XI.

Bilbao and Sociedad will like their chances of landing the midfielder as well, however. Illarramendi was born and raised in the Basque Country and spent his entire career with La Real before moving to Madrid, so the prospect of moving back home in order to rebuild his career could be tempting.

Lazio Move for Mario Balotelli?

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According to Tuttomercatoweb (h/t Metro's Jon Harvey) Lazio are offering Mario Balotelli a way out of his Anfield nightmare in the form of a loan deal, but only if the Reds are willing to pay 70 percent of his wages. Football Italia added to the report, stating the deal is contingent on the club making the Champions League group stages.

The Biancocelesti beat Bayer Leverkusen 1-0 at home during the first leg of their Champions League play-off tie and face a difficult trip to Germany on Wednesday. If they fail to hold on to their lead and lose out on the extra funds that come with Champions League qualification, Balotelli's wages will become to costly for the club, per Football Italia.

Super Mario has been a massive disappointment for the Reds since joining from AC Milan last summer, scoring just a single Premier League goal, per WhoScored.

The Italian wore out his welcome with previous clubs like Manchester City and Milan, but contrary to his time at Anfield, he managed to flash enough talent to keep his value relatively high. That wasn't the case in 2014-15, and at this point in time, it's hard to see any club paying a significant fee for his services.

Lazio's offer could be a possible solution, although it remains a dreadful deal for the Reds. The club would still be on the hook for a huge portion of his wages, and with no mention of a clause that would obligate the Biancocelesti to make the move permanent, there are few advantages for Liverpool to this proposition.

Manager Brendan Rodgers seems desperate to get rid of the striker, so perhaps Lazio are testing to see just how badly he wants Balotelli gone.

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