The utility man, who has been used sparingly by Los Merengues boss Jose Mourino this season, is surplus to requirements at the Bernabeu which has caught the attention of Kenny Dalglish.
A major squad overhaul is being planned by the Reds boss and he is looking to make up to five signings when the summer transfer window opens for business at the end of the season.
Dalglish is keen to add some fresh faces to the dressing to increase competition for places but knows he needs to get rid of the dead wood before making any additions.
High earners and under-performing players including Kuyt who is rumoured to be heading the list of outgoing players with Bundesliga side Hamburg already making enquiries about the 31-year-old although a £1 million bid has been turned away.
Despite being an Anfield favourite the Dutchman’s six-year spell on Merseyside is coming to an end and he could be replaced by Turkey international Altintop.
The 29-year-old is desperate to leave the La Liga champions after a campaign spent watching from the sidelines and Dalglish believes he is the perfect replacement for Kuyt with both renowned for their versatility and unselfish work ethic.
A move to Liverpool would certainly appeal to a player who has made just five appearances for Madrid since joining last summer following a eight-succesful year spell in Germany with Schalke and then Bayern Munich.
Altintop, who’s contract runs until 2015, can operate at right back, holding midfield and on the wing is thought be valued at £2 million with a bid in that region would be enough to secure his services.
Dalglish see’s him as the ultimate bargain signing but will only make his move once Kuyt and Maxi Rodriguez have left the club.