Liverpool have emerged as serious contenders, with posts on X indicating that the Reds have been contacted by Rodrygo's representatives about a potential move to Anfield, following reports that Luis Diaz is set to depart.

This development has dealt a significant blow to Arsenal's hopes of securing the Brazilian star, who has also caught the attention of Paris Saint-Germain.

Rodrygo, 24, has established himself as one of Europe's elite forwards, contributing to three La Liga titles and two Champions League triumphs during his time at Real Madrid. Despite his success, The Athletic reported that Real Madrid's hierarchy and new manager Xabi Alonso are open to letting him leave, with the player himself ready for a new challenge. Luka Modric, in an interview with Get Spanish Football News, hailed Rodrygo as a "world-class superstar," underscoring his value.

Arsenal have long been considered frontrunners for Rodrygo, with sources claiming the Gunners are his "absolute priority" if he leaves Madrid. Manager Mikel Arteta is reportedly prepared to deploy him on the left wing and willing to meet Real Madrid's valuation, which exceeds 90 million euros.

However, Liverpool's interest has intensified the competition. TBR Football reported that Rodrygo's intermediaries have held discussions with multiple clubs, including Liverpool, Manchester City, Chelsea, PSG, and Bayern Munich, informing them of his potential availability.

The Reds' pursuit comes as they brace for Diaz's departure, with German media claiming the Colombian has agreed personal terms with Bayern Munich. Rodrygo, versatile enough to play across the front line but keen to operate on the left, could seamlessly replace Diaz in Liverpool's attacking trio alongside Mohamed Salah.

PSG have also entered the fray, with ESPN Brasil reporting that the Ligue 1 champions have contacted Rodrygo's camp. Fresh off their first Champions League title, PSG present an attractive destination. However, Defensa Central noted that Real Madrid are pushing for PSG's standout midfielder Vitinha to be included in any deal, a demand that could complicate negotiations given Vitinha's importance to Luis Enrique's squad.

Arsenal remain in pole position, yet, the growing interest from Liverpool and PSG, coupled with Manchester City's reported talks, means Arsenal must act swiftly to secure their target. Fabrizio Romano, in a July 7 newsletter for GiveMeSport, noted that no deal is likely until Real Madrid's Club World Cup campaign concludes, potentially delaying negotiations until after July 13.

Rodrygo's limited game time under Alonso at the Club World Cup, starting just one match and playing 23 minutes across three others, has fueled speculation about his future. Despite his recent Instagram post celebrating Real Madrid's semifinal run in the tournament, the transfer rumors show no signs of slowing down.

As the summer window unfolds, Rodrygo's next move promises to be one of the transfer market's defining sagas, with Liverpool, Arsenal, and PSG locked in a high-stakes battle for his signature.

Xabi Alonso's rise at Bayer Leverkusen, now interest by football giants