Gareth Barry has stated his case to be allowed to join Liverpool in talks with Martin O'Neill, the Aston Villa manager, but if the England midfield player succeeds in securing a move to Merseyside, Xabi Alonso does not intend to be the man to make way for a new arrival.

Alonso's future at Liverpool is uncertain, with Rafael Benítez prepared to consider selling the 26-year-old to a Spanish or Italian club to raise funds for reinforcements, but if the Spain midfield player has his way he will stay at Anfield.

“I think I will be here next season even if Barry comes,” Alonso said yesterday. “He would bring good competition and he would be more than welcome. He can play different positions and if he plays in midfield then I could play with him. I have no problem with that. My situation is that I am a Liverpool player and I am very happy here. I signed a new contract last year and that meant I wanted to stay.”

Benítez spoke to Alonso on Saturday after reports in a Spanish newspaper that the player was a target for Real Madrid. “He never told me he wanted me to stay because he doesn't need to tell me that,” Alonso said. “He just wanted to clarify something the story had said. If he wanted me to leave I would prefer him to be honest and say, ‘Xabi, we are thinking about other players and you are not going to play that much.' Then I would look for a different option. But he still thinks I can play an important role.”

O'Neill, who has been irked by Benítez's approach to transfer negotiations, maintains that Barry will be staying at Villa Park. “We've spoken to Gareth and everyone wishes very strongly that he will stay,” the Villa manager said. “The main aim for the chairman and me is to try and keep Gareth at the club.”

Liverpool have offered Sammy Lee, their former player and coach, a role as assistant manager to Benítez. Lee has been without a club since losing his job as Bolton Wanderers manager in October.