Real Madrid are still chasing Liverpool midfielder Xabi Alonso, sporting director Miguel Pardeza said on Friday.

"Madrid should not rule out an option until it has been finally closed off," Pardeza said at a news conference.

"Right now there is an insurmountable economic barrier but it is something that can change," he said, adding that the club is looking at alternatives to Alonso but Arsenal midfielder Cesc Fabregas is not a target.