Real Madrid could reportedly offer to snatch Raheem Sterling from Liverpool in a huge £35million deal.

The reigning European champions are rumored to be offering to pay the 20-year-old in excess of a whopping £120,000-a week. Representatives of Sterling have, apparently, rejected a deal from the Reds that had offered the attacking player £70,000-a-week, according to various media sources online.

However, Liverpool fans need not panic quite yet, as other sources still indicate that Sterling wants to stay at Liverpool and is close to agreeing a new £100,000-a-week contract to stay at the Reds. He still has two-and-a-half years left on the £40,000-a-week contract he inked in December 2012.

It seems Liverpool has discussed the matter with his advisers over Christmas and believe that significant progress has been made with the player. Liverpool expect to announce the deal by the end of the month.

Liverpool also wants to rope in Saido Berahino. Brendan Rodgers is set to land the England 21-year-old striker starlet in a £23million deal to bolster his front line.

Meanwhile, in other transfer news, Tottenham are eyeing Burnley's Danny Ings, and Brazilian goalkeeper Neto has confirmed that he will not renew his contract with Fiorentina. His contract expires at the end of the season and he wants to leave the Stadio Artemi Franchi.