Bayern Munich have been in discussions with Davies' representatives to extend his stay at the Allianz Arena, but a new development from Real Madrid has introduced uncertainty into what was thought to be a straightforward renewal.

Davies, who has amassed five Bundesliga titles and one Champions League trophy with Bayern, is entering the final months of his contract, set to expire in the summer of 2025. This situation has attracted attention from several top clubs, including Real Madrid and Manchester United.

Real Madrid have reportedly tabled a lucrative five-year contract proposal to Davies, offering him an annual salary of 20 million euros, which translates to approximately 323,000 pounds per week.

According to Cadena SER, Real Madrid have made it clear that this offer is their final bid, stating they will not participate in a bidding war with Bayern for the player's services. The decision now rests with Davies, whose future was previously thought to be secured with Bayern.

Christian Falk, a journalist for Bild, had earlier in December suggested that Manchester United were keen to engage with Davies for a potential 2025 move, indicating they could initiate talks this January.

However, recent reports from Sky Sports Germany and AS have indicated that Davies was on the verge of agreeing to a new deal with Bayern, with meetings planned between the player's agents and club officials.

The twist in this transfer saga could open the door for Real Madrid and Manchester United, as Davies contemplates his future.

Beyond Davies, Real Madrid are also eyeing reinforcements from other clubs. Cadena SER has noted that two Manchester City stars, Rodri and Erling Haaland, are on their wish list. With Manchester City experiencing a less than stellar season, Real Madrid see an opportunity to swoop in for these key players.

Additionally, Madrid have shown interest in Girona's Miguel Gutierrez and an unnamed winger from Athletic Bilbao, aiming to bolster their defensive and attacking options. Defensive injuries have prompted Madrid to consider January moves, particularly for Bournemouth's center-back Dean Huijsen, although they face competition from Manchester City for his signature.

The transfer market's attention is also on Liverpool's Trent Alexander-Arnold, whose contract situation at Liverpool mirrors Davies'. Real Madrid have made an initial bid for the English right-back, but they now contend with interest from Bayern Munich, who are reportedly prepared to offer him a significant salary and a pivotal role in their team.

Lastly, Madrid's interest extends to Atalanta's Ederson, a defensive midfielder who has caught the eye of several clubs including Manchester United, Liverpool, and Manchester City. However, Atalanta have firmly stated they would only consider letting him go in the summer of 2025.

This transfer window promises to be one of strategic moves and high stakes as clubs like Real Madrid look to capitalize on contract expirations and squad weaknesses to reshape their teams for future challenges.

Real Madrid's Alphonso Davies transfer offer shakes Bayern Munich's confidence