Konate, 26, is yet to commit his future to Liverpool and looks set to leave as a free agent once his contract expires at the end of the season.
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According to BILD, Real Madrid are back in for the Frenchman due to the potential lack of transfer fee with Schlotterbeck no longer at the top of their shortlist.
Dortmund would likely demand a fee of around €40 million for Schlotterbeck, who has also been linked with rivals Barcelona.
It’s been widely reported that Real Madrid are looking to sign a new centre back this summer as they seek to overhaul their aging and injury prone defence.