Spanish midfielder Xabi Alonso has shocked Real Madrid by rejecting a contract extension, according to Sport Barcelona. And it has been rumoured that the highly talented 30 year old could be making a surprise turn to Liverpool, the club he left in August 2009. Alonso was one of the stars of Spain's Euro 2012 winning team, but with his value decreasing with age and no shortage of options in Madrid's midfield, it is thought the La Liga winners could be willing to cash in with Alonso's contract due to expire in 2 years time. The passmaster has been greatly missed at Anfield, where he was once part of "The best midfield in the world" alongside Steven Gerrard, and Javier Mascherano, the latter who departed for Barcelona in 2010. Alonso's last season at the Reds, the 2008-09 campaign, resulted in Liverpool narrowly missing out on the Premier League title to Manchester United, as well as reaching the Semi-finals of the Champions League. Since then the Reds have fallen far from challenging for the title and made the transition from European cup regulars to Europa League hopefuls. Many fans consider Xabi Alonso's departure as the catalyst for a disappointing few years, and would like nothing more than to see him return to Anfield. But whether Alonso would consider joining a team that finished 8th in the league last season and can only provide Europa League football after a fantastic campaign with Real Madrid, where he played 52 games in the previous season, is another matter. Alonso regularly uses his Twitter account to congratulate the current Liverpool team on victories, and admits that the Merseyside club hold a special place in his heart. In a 2011 interview with Liverpool's in house TV channel, LFCTV, Alonso refused to rule out a return to Anfield before the end of his career. He said: 'I miss lots of things. I miss the lads, I miss the atmosphere at Melwood - it was a great place to work, and the scenario of Anfield is unbeatable. 'The special nights I have been privileged enough to live, those will be in my memory forever and they are difficult to compare anywhere in the world." He also revealed he keeps in touch with Liverpool captain Steven Gerrard and that he is raising his own son, Jon, to be a Liverpool fan. Skybet have Liverpool as 9/4 favourites to sign Alonso this summer. Reds fans can only hope that, while it may be unlikely this time around, the bookies have it right again. Follow me on Twitter @matt_volpi for Liverpool news and views.