Real Madrid are prepared to go head to head with La Liga rivals Barcelona in a £135m battle to sign Philippe Coutinho from Liverpool, according to a report.

The Brazilian playmaker was keen to join the Catalan club in the summer and handed in a transfer request to push through a move.

Liverpool rejected three offers for the 25-year-old, however, the largest of which totalled £114m with add-ons, as they repeatedly turned down the chance to cash in.

Reports in the Spanish press last month suggested that Paris Saint-Germain have reignited their interest in Coutinho, meanwhile, with Liverpool understood to be more willing to offload next summer when given a chance to bring in attacking replacements.

Mundo Deportivo suggests that Madrid are the latest side to join the race and have already contacted the player's representatives, but they will not move until the end of the season which could give Barca a headstart.

Following a slow start to the campaign, Coutinho has worked his way back to fitness and has played a direct part in seven goals in nine appearances.