Liverpool Transfer News: Latest Rumours on James Rodriguez and Mahmoud Dahoud

Liverpool reportedly believe they can sign Real Madrid star James Rodriguez if they qualify for the UEFA Champions League, while the Reds are once again being linked with Mahmoud Dahoud of Borussia Monchengladbach.

According to the Sunday Mirror's Chris Hatherall, Liverpool are back in the race to sign Rodriguez following new reports the Colombia international has ''fallen out'' with manager Zinedine Zidane.

The Reds have been linked with the 25-year-old in the past, but speculation mostly died down after the summer. Per Hatherall, suggestions Real could use the player in an unlikely swap deal for Chelsea's Eden Hazard have reignited their interest, however.

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The report also states Los Blancos will likely value the attacking midfielder at roughly £65 million, a steep fee for even the biggest clubs in the world. Considering Rodriguez isn't a regular starter, Real will have trouble finding any takers for such a price.

Rodriguez rose to prominence at the 2014 FIFA World Cup and enjoyed a fine first season in the Spanish capital thereafter, but he struggled during the 2015-16 campaign and hasn't reached the same heights this season, either.

The nifty playmaker has flashed his talent at times, as you can see in the video below:

Team-mate Isco has been the more consistent of the two during his limited appearances, however. He's consequently played more when injuries have opened up a spot in the starting XI.

The belief is Rodriguez could return to his best with consistent playing time, something he likely won't find in Madrid. Spending £65 million on the Colombian would be a risky move and uncharacteristic of the Reds, who have been more careful with their spending under manager Jurgen Klopp when compared to other top Premier League clubs.

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Dahoud would be a more realistic transfer target, and according to Paul Hetherington of the Daily Star Sunday, the Reds have moved the youngster to the top of their wishlist for the summer. Borussia Dortmund are also said to be in the mix.

Per Bleacher Report's Lars Pollmann, German publication Kicker maintains the Bundesliga side are in pole position for the 21-year-old:

Dahoud has long been named as a target for the Reds, and given his obvious potential, it's easy to see why. The Germany under-21 international is one of the Bundesiga's finest young talents, and the presence of a minimal buyout clause―£8.5 million, per Hetherington―makes him that much more attractive.

Here's a look at some of his highlights:

No elite club has done a better job of adding and nurturing young talent in the past 18 months than Dortmund, however, and Signal Iduna Park has proved to be a fantastic destination for Europe's top prospects.

BVB's sterling reputation gives them a major advantage over other suitors, so Liverpool will have to act fast to beat their competitors.