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Liverpool advance talks for Yisa Alao

Liverpool are understood to have taken concrete steps by submitting a proposal designed to put them in pole position for Alao, according to the Daily Mail, amid strong competition from Manchester United. While neither club expects the player to make an immediate impact at senior level, both view him as a long-term investment with substantial upside.

Those familiar with Liverpool’s thinking suggest the club see Alao as a player who fits their broader recruitment strategy under Arne Slot: identifying elite young talent early, securing value before market inflation, and allowing structured development either within the academy system or via carefully managed loans.

The Merseyside club’s move is also seen as opportunistic timing. Sheffield Wednesday’s ongoing financial difficulties, including points deductions relating to EFL regulatory breaches, have increased the likelihood of player sales as the club look to stabilise their position.

Man Utd monitoring but yet to close deal

Manchester United have also made their interest clear and are believed to have submitted a bid in the region of £450,000. However, Liverpool’s approach is thought to be more advanced at this stage, with discussions progressing around both valuation and pathway planning.

United’s recruitment department have been active in the domestic youth market since Ruben Amorim’s appointment, prioritising technically secure defenders capable of adapting to modern tactical systems. Alao’s athletic profile, recovery pace and comfort in possession have placed him firmly on their radar.

Despite that interest, there is an awareness at Old Trafford that the player would not be fast-tracked into first-team contention. As a result, negotiations have focused less on immediate footballing opportunities and more on long-term development frameworks.

Development pathway key to decision

Alao’s representatives are understood to be weighing up more than just financial terms, with clarity over progression seen as a decisive factor. Both Liverpool and Man Utd have presented development plans outlining academy integration, positional coaching and potential loan routes over the next two to three seasons.

Liverpool’s recent track record of nurturing young defenders is believed to be a significant selling point, particularly their willingness to allow players to mature out of the spotlight before stepping into senior contention. United, meanwhile, are offering assurances around elite facilities and exposure within their wider youth structure.

At 17, Alao remains raw and is not expected to feature regularly in Premier League football in the short term. However, scouts describe him as physically advanced for his age, tactically receptive, and capable of playing both as a traditional left-back and in a more progressive wide role.

Sheffield Wednesday face difficult call

For Sheffield Wednesday, the situation presents a difficult but potentially necessary decision. With the club rooted to the bottom of the Championship and operating under financial pressure, selling a high-value academy asset could provide short-term relief, even if it comes at the cost of long-term sporting potential.

Those close to the club acknowledge that retaining Alao may prove challenging if bids continue to rise. The belief is that a structured sell-on clause or performance-based add-ons could form part of any agreement, ensuring Wednesday benefit from his future success.

As matters stand, Liverpool appear to have edged ahead in the race, but Manchester United remain firmly in contention. With the January window progressing, the expectation is that clarity will emerge sooner rather than later, as all parties seek resolution.

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