The Daily Mail says Liverpool are weighing up a free transfer move for Diarra should they sell Javier Mascherano to Barcelona.
The powerful 29-year-old is one of four players earmarked for sale by Jose Mourinho and Real had slapped a £6m price tag on him. However, it is understood they will now allow him to leave on a free transfer for the right club.
Agent Frederic Guerra said: "Mahamadou is still a top player and he can do a great job in the Premier League. There is a lot of interest."
Manchester United and Blackburn have also been credited with interest but Liverpool would be his preferred option.
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