Sergio Aguero
Sergio Agüero has scored 26 Premier League goals this season. Getty Images

Manchester City and Liverpool have been put on alert after reports in Spain claimed that both Sergio Agüero and Raheem Sterling are on Real Madrid's list of transfer targets, as the side looks to overhaul its playing staff.

Following a season without silverware, Real Madrid president Florentino Perez has sacked Carlo Ancelotti. A new era is expected to start on 3 June with the appointment of former Liverpool and Chelsea manager Rafa Benitez.

Reports have claimed that the Spanish boss has asked the president to pursue the signing of Sterling. Benitez played a crucial role in persuading the wantaway striker to move from QPR to Liverpool during his time at the Anfield giants.

However, new rumours in AS claim that Perez has earmarked Agüero as the marquee signing of the summer.

Sergio Aguero

Having signed Welsh international Gareth Bale for a world record fee in the 2013 and James Rodriguez for around £63m (€87m) last summer, the Spanish publication claims Perez wants Agüero to become his new Galactico.

AS points out that Perez has long been an admirer of the Argentinian international and already tried to secure the services of the current Premier League top scorer when he decided to leave Atlético Madrid in 2011.

Agüero was close to a move to Los Blancos but later admitted that Atlético Madrid blocked the deal due to the rivalry with their neighbours, and he was forced to move to the Etihad Stadium instead.

AS claims that the "soap opera is looming again and its outcome will depend upon the price that City put on Agüero".

Further reports suggest that Real Madrid would be ready to part ways with Karim Benzema to fund the move, as they already did in previous seasons when Mesut Özil and Ángel Di María were jettisoned to secure the services of Bale and Rodriguez.