The 26-year-old has fallen down the pecking order at the Bernabeu and will be allowed to leave this summer if the right offer comes in from his suitors.
According to Tuttomercatoweb via Sportsmail, Los Blancos have put a price tag of €25-30m on his head – a figure which translates as £21.6m-£25.8m.
Asensio’s contract at the Spanish club runs out in a year, meaning Florentino Perez is keen to cash in now, to avoid letting him leave for free on June 30, 2023.
The same report says that Asensio is willing to take a pay cut to join a ‘convincing project’, which is likely to include more playing time for himself.
As a result, he considers Liverpool a less of an attractive project given that Mohamed Salah just renewed his contract at the Anfield club, and their already-formidable front-line under Jurgen Klopp.
Arsenal will present a better option for Asensio as the Gunners have fewer attacking options. But the signing of Gabriel Jesus from Manchester City has raised some questions, making a move to AC Milan the best opportunity for regular game-time.
Asensio started just 19 matches, with a further 12 coming off the bench in La Liga last season. In six seasons at Madrid, he has won three La Liga and Champions League titles while making 235 appearances.
The attacker can play across the front three or in midfield as the most advanced midfielder.