Fernando Torres will be gunning for Real Madrid, city rivals with his old club Atletico, when Liverpool meet the Primera Liga champions in the last 16 of the Champions League, former Anfield defender Phil Thompson said.

"Torres didn't get the opportunity to play against Atletico," Thompson said.

"So, he'll be really looking forward to going back there and putting one over Real."

The tie over two legs in February and March has a special significance for other members of the Liverpool set-up.

Manager and Madrid native Rafael Benitez coached Real reserves early in his career, defender Alvaro Arbeloa joined Real as a 16-year-old and goalkeeper Pepe Reina was born in the Spanish capital.

Henry says Arsenal still in it

Thierry Henry reckons Arsenal cannot be ruled out of the race for the Premiership title.

The Gunners are currently eight points behind leaders Liverpool but have the chance to close the gap when they take on the Reds in London this afternoon.

Henry, who left Arsenal in the summer of 2007 to join Barcelona, said a win over Liverpool would throw the battle for top spot wide open.

"Everyone has been having a go at Arsenal but the Premier League is very competitive and not easy for anyone," he said.

"They are still in the race.

"It's better to be eight points ahead than eight points behind but it could be five after Sunday (today) if Arsenal beat Liverpool."

Xavi signs new Barcelona deal

Spain midfielder Xavi has signed a contract extension that will keep him at Barcelona until June 2014.

The deal contains a buyout clause worth 80 million euros ($112 million), the Primera Liga leaders said.

"It's a privilege to be here for so many years," said the 28-year-old Xavi who joined the club when he was 11 and made his first-team debut in August 1998.

"It's the club of my life."

No agreement to sign Ronaldo - Real

Real Madrid president Ramon Calderon has denied the existence of a secret agreement by which Manchester United will sell Cristiano Ronaldo to the Primera Liga champions at the end of this season.

El Mundo reported that a Real director had been overheard talking about the alleged accord, prompting a furious response from United manager Alex Ferguson who said he "wouldn't sell a virus" to the Madrid club.

"It's absolutely false that there is any agreement with Manchester United on that subject, about which I am already tired," Calderon said.

"The issue is completely dead and that's why I don't want to talk about it anymore," he added.

Del Piero - Italy's top sportsman

Juventus captain Alessandro Del Piero is the Italian Sports Personality of the Year. He topped the Rai TV poll with 58 per cent of the vote, well ahead of Valentino Rossi, the MotoGP champion who totalled 18 per cent.

"It is a wonderful recognition," Del Piero said. "I am happy with what I have achieved this year, the way I am playing and what has happened around me."

Del Piero has scored twice against Real Madrid this season. Juve's next opponents in Europe will be Chelsea.

"There are always going to be very strong sides at this stage of the competition, including outsiders... all teams are dangerous."

Magnusson to sue West Ham

Former West Ham chairman Eggert Magnusson has sued the Premier League club and its owner Bjorgolfur Gudmundsson for breach of contract.

Magnusson is demanding $1.64m for an alleged violation of his severance settlement. The case was registered at Reykjavik Municipal Court on Thursday.

Magnusson became chairman of West Ham in 2006 after Gudmundsson bought the majority shareholding in the club.

Gudmundsson dismissed Magnusson from his post in September 2007 and the two concluded a severance settlement in which Gudmundsson bought Magnusson's West Ham stake, which was held by a company in Luxembourg.

Strachan now eyeing Huszti

Gordon Strachan told reporters that Celtic are set to make a bid for Szabolcs Huszti, the Hungarian midfielder currently on the books of Bundesliga's Hannover.

The Celtic manager completed the signing of Derry City winger Niall McGinn last week and now is gearing up for a busy January transfer window with Huszti next in line.

"I wanted to keep that one quiet," Stratchan said.

"But you can't keep any secrets in the world we live in.

"We've watched Huszti a lot lately but I won't know how the player feels about us until I meet him. Official talks will begin when the window opens in January."

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