Liverpool have reportedly signed Real Madrid and Arsenal target Pedro Alcala from Spanish side Malaga CF after agreeing personal terms with the Spanish Segunda División outfit.

Liverpool scout Paco de Gracia, (who incidentally used to be a Real Madrid scout), was apparently responsible for the 18-year-old centre-back’s move to Anfield.

Alcala was also being closely followed by Arsenal manager Arsene Wenger before the swoop from Rafa Benitez.

Real Madrid failed to secure the move because they were reluctant to pay compensation to Malaga for the transfer and were also only willing to offer the young centre back a youth contract, with Arsenal failing because they were unwilling to match the offer from Liverpool.

Liverpool also offered Alcala professional terms, which tempted the talented young defender to make a move to the English Premiership.