The 24-year-old Brazilian's future has been under scrutiny after limited playing time under new manager Xabi Alonso, prompting interest from England's elite clubs.
Arsenal have shifted their focus, securing a deal for Crystal Palace's Eberechi Eze, effectively ending their pursuit of Rodrygo.
Football.London reported that Eze underwent a medical on Saturday, following a verbal agreement for a transfer package exceeding 60 million pounds, outmaneuvering rivals Tottenham in the process.
This move has left Liverpool as the frontrunners for Rodrygo, though their interest hinges on their ongoing negotiations for Newcastle United's Alexander Isak, according to Spanish outlet Defensa Central.
Rodrygo's situation at Real Madrid has fueled speculation. His mere 93 minutes at the FIFA Club World Cup and an unused substitute role in Real's 1-0 La Liga opening win against Osasuna have raised questions about his place in Alonso's plans.
Despite this, Alonso has publicly backed the winger. "It was only a match," Alonso said after the Osasuna game. "If in three months he still isn't getting these minutes, then it's different. I count on Rodrygo, of course. It's just one game; we don't have to read too much into the future". He reiterated this stance on X, stating, "I've seen him well and I count on everyone. I count on Rodrygo for sure, 100%".
However, reports suggest Rodrygo is unsettled. Defensa Central noted that the winger was "very touched" by his lack of involvement against Osasuna, with Real Madrid not ruling out a departure before the transfer window closes. Liverpool's interest has gained traction, with sources claiming Rodrygo consulted his compatriot, Liverpool goalkeeper Alisson, about a potential move to Anfield.
Yet, Liverpool's pursuit appears conditional. "A move for the South American depends on whether or not Newcastle loosen their stance on letting Alexander Isak go," Defensa Central reported, indicating Rodrygo is a secondary target behind the Swedish striker.
Tottenham's hopes of landing Rodrygo have also faded. Despite earlier reports of a loan bid being accepted by Real Madrid, valued at approximately 90 million euros by Transfermarkt, Liverpool's emergence has overshadowed their efforts. Manchester City, previously linked with Rodrygo as a potential replacement for Savinho amid Tottenham's interest in the latter, have not been mentioned as active contenders in recent updates.
As the transfer window's final days approach, Rodrygo's next move remains uncertain. While Alonso insists he remains integral to Real Madrid, the winger's limited minutes and Liverpool's conditional interest keep the door open for a dramatic late switch to the Premier League.
Fans and pundits alike await clarity on whether Rodrygo will stay and fight for his place or seize a new opportunity at Anfield.