Alexander-Arnold's current deal with Liverpool will expire during the tournament. Real Madrid want him to be available for the start of the competition, under the leadership of new coach Xabi Alonso.
Real Madrid are not willing to pay a transfer fee for Alexander-Arnold. Instead, they have asked Liverpool to release him from the last month of his contract in talks last week.
This would make it easier for Alexander-Arnold to join Real Madrid without a transfer fee being involved.