The Spaniard could still pull significant strings in the Liverpool engine room.
Jurgen Klopp has already been heavily linked with a move for a Bundesliga star today but may be spurned if attempts to prise another away.
The Reds have reportedly agreed terms with former Borussia Dortmund midfielder Kevin Grosskreutz, who is training with Galatasary after a summer move was caught up in red tape.
Klopp may well strengthen his squad in January, especially as the Europa and Premier Leagues offer routes into the 2016/17 Champions League.
Xabi Alonso's name has been linked with the Merseysiders for the past 18 months. Bayern Munich insist the 34-year-old, who is out of contract in the summer, is not going anywhere.
Bayern chief executive Karl Heinz Rummenigge told
Sport Bild that Alonso is 'extremely happy' with the club.
"In the near future," he said, "we'll give the situation some concrete thought and hold talks with Xabi and his agent. There is no truth in the rumours that he's planning his departure.
"He has led me to understand that he is interested in staying at Bayern.
"Xabi Alonso is a fine player who performs a very important role in our team."
