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Right-back Alexander-Arnold is out of contract at Anfield at the end of the season, with Madrid mooted to be his likely destination if he departs boyhood club Liverpool.

Madrid was reported to have had a bid for the England international rejected in January.

Now Benitez, who coached both clubs and won the Champions League with Liverpool, has suggested it is a move Alexander-Arnold should make.

With Virgil van Dijk and Mohamed Salah out of contract, Liverpool is potentially facing a rebuild, while Benitez expects a talented, young Madrid team will continue to thrive.

"[Alexander-Arnold] is an offensive defender and he's playing as a midfielder sometimes," Benitez said. "Real Madrid is an attacking team, the best team in Spain, and they will be the best team because they have the potential.

"For an offensive defender in an offensive team, you have more chances to make assists and create situations in attack – they will be good for him as a player.

"He's doing that at Liverpool, but with Real Madrid, you can guarantee he will do that for years.

"As a Liverpool fan, you would say him staying is much better because he gives us something special. But if he goes, and as a Real Madrid kid all my life, it will also be good for Real Madrid and for him."

Benitez does not expect Liverpool will be able to keep all of Alexander-Arnold, Van Dijk and Salah, but he expects the Premier League leader will be equipped to respond to any departures.

"It will not be easy to keep the three players, that is very clear," the Spaniard said. "The three are very important players, but if the club is working on replacements, if the club is making the right approach to them, they will sort it out. 

"I don't know if the three of them [will stay], I don't think so.

"If they cannot, I'm sure they will have a new option and the new player will come and will be another kind of player with energy and give something different."