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Real Madrid announced the signing of the full-back ahead of the transfer window opening.
Alexander-Arnold, 26, heads to the Spanish capital to link up with Los Blancos in time for the beginning of the Club World Cup.
The Reds also save a month of Alexander-Arnold's salary as Real Madrid pick up the tab to see the Anfield side earn a tidy £10m package.
The Spanish giants will be relieved to have a right-back at their disposal having seen Federico Valverde and Lucas Vasquez fulfill the role after Dani Carvajal was ruled out for the season.
Though, he can understand the thought process the Club World Cup hopefuls went through.
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"Honestly, no, I mean, I’m stunned by that really, that £10m has changed hands for, but there is £100m pounds at stake in this World Club Championship and Real Madrid have got a great chance of doing it," he said on the It's Called Soccer podcast on the US Overlap channel.
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"So you imagine if he plays in this tournament, they haven’t got a right back that’s playing there naturally at this moment in time.
It’s incredible."
Trent Alexander-Arnold is now a Real Madrid player(Image: Steven Halliwell | MI News/NurPhoto via Getty Images)
Neville has been impressed with Liverpool's work so far this summer.
I mean, the only thing that’s going to improve you when you win the league is signing world-class players, or players that have got the potential to be world-class players.
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