Real Madrid's assistant boss Paul Clement has ruled out a move for Liverpool's Raheem Sterling but understands why "the best players" are linked with the club.

Sterling's contract discussions have reportedly stalled in the past week, resulting in several rumours surrounding the England international's future.

Real Madrid are one of the clubs supposedly hoping to buy Sterling if the forward fails to renew his contract, but Clement revealed that he won't be coming to the Spanish outfit anytime soon.

"Real Madrid are always going to be linked with some of the best players and also some of the best emerging young talents," Clement told The Express.

The 42-year-old admits that Carlo Ancelotti's squad lacks depth but makes up for it in quality, and won't be chasing Sterling if he fails to renew his contract.

"My understanding at the moment is that the club and manager's very happy with squad of players - we haven't got a big squad.

"But it is a squad packed with quality and there are no current plans for ins and outs."

Sterling's current contract with Liverpool is set to expire in the summer of 2017.