Suggestions the Spanish international would not be travelling on to the second part of the club's Far East tour were also allayed by the 28-year-old's involvement today in training at Singapore's national stadium.

The club insisted Alonso did not figure in yesterday's 1-1 draw with Thailand in Bangkok because of an ankle injury, although he travelled with the party to Singapore today.

There have been claims in Spain that the reason for his absence from the team was down to a deal having been struck with Real and Liverpool's desire for the player not to pick up an injury.

However, a Liverpool spokesman said today: "Xabi is with us in Singapore, and will train with the rest of the squad. He was injured ahead of the Thailand game, people can say what they like about that.

"And there has been no deal agreed with anyone for his transfer to anyone."

It has been claimed that Madrid have decided to end the summer-long saga in the face of defiance from Liverpool boss Rafael Benitez, who has intimated that he wants a fee of over £30million for the player.

It has been suggested the Spanish giants are now prepared to meet the asking price for their transfer target.

Alonso has made his desire to leave clear, and had hoped not to have to fly to Vienna on Sunday to meet up with the Liverpool squad ahead of the flight to the Far East.

But Alonso did make the trip, and sources at Liverpool expect him to face Singapore on Sunday before the squad fly back to the UK the following day.

A number of players have been linked with Liverpool if Alonso departs including Moussa Sissoko (Toulouse), Esteban Cambiasso (Inter Milan), Wesley Sneijder (Real Madrid), Alberto Aquilani (Roma) and Javi Martinez of Athletic Bilbao.

There are also claims today that the refinancing package being negotiated by owners Tom Hicks and George Gillett could be delayed.

The deadline for the pair's loans to be refinanced with the Royal Bank of Scotland and Wachovia is tomorrow.

The club's American owners have been confident that they will get the refinancing of their original £350million loans, but negotiations could well continue beyond this week.

RBS have made all the right noises about agreeing a new loan package, but there are rumours that Wachovia are not as keen.

Madrid sporting director Miguel Pardeza still holds out hope they can persuade Liverpool to part with Spain duo Alonso and Alvaro Arbeloa.

With regards Alonso, Pardeza said: "It's at a standstill. From day one, Liverpool have asked for more than Madrid are ready to pay and it's very difficult to understand. But I've not lost hope that things can be resolved."

Pardeza, who confirmed Madrid have been looking for an alternative to Alonso but with little success, also admitted a lack of progress in their chase of defender Arbeloa.

"With Arbeloa there was an option which, at the moment, has come to nothing. Liverpool haven't had much intention of letting him go, even though he has one year left on his contract, and we are still in this situation," Pardeza told Spanish newspaper Publico.

"There is more than a month of the transfer market left and this could change. I'm not going to deny that we'd like to have Arbeloa."