Alonso's current contract expires next summer, leading to speculation that he could return to the Premier League with former club Liverpool also linked to the Real Madrid midfielder.
But according to reports in Spain, Alonso will sign a deal that will see him stay at Los Blancos till 2016.
Barcelona have been linked for a move for Atletico Madrid's Koke next summer after an impressive start to the season from the 21 year old. Barcelona manager Tata Martino wants reinforcements in the midfield, with Alex Song the only back up for Sergio Busquets in the crucial pivot role. With the former Arsenal midfielder likely to leave Barcelona at the end of the season, Martino is looking for a replacement with Arturo Vidal and Ramires also targets according to Spanish newspaper El Mundo Deportivo.
Barcelona are also reportedly in advanced negotiations to sign goalkeeper Pepe Reina with current number one Victor Valdes set to leave next summer. Barca could also be set to lose highly rated young star Sanabria, who has a 2.7m GBP buyout clause in his contract. The 17 year old is a target for Arsenal, Liverpool, and Manchester City.
Elsewhere Arsenal target Julian Draxler has dismissed that he could leave Schalke in January but has admitted he will consider his future in the summer.
Liverpool could rival Inter Milan and Arsenal for striker Kostas Mitroglou, with the Greece striker impressing Anfield scouts after firing his country the World Cup finals in the playoffs against Romania.
Finally, highly rated England youngster Berahino is expected to commit his future to West Brom this week and sign a new contract with the club.