The development appears to have been leaked by the club as it was reported in the Echo - and Alonso isn't speaking to English journalists right now.
He is speaking to Spanish journos though, and Guillem Balague is reporting on his site that the Alonso camp is denying the transfer request.
So the pantomime continues...
Either way, it's by the by - the situation hasn't changed. Either Real Madrid cough up the asking price, or Xabi will kick off the season in red.
If he does go, it looks like the vultures are already circling, desperate to apportion blame. But why does there need to be a scapegoat?
Benitez and Alonso hate each other. Have done for some time. Their relationship, at best, is a 'working' one.
Both have undoubtedly benefitted from the other though.
Xabi's stock as a footballer has obviously risen thanks to his five years at Anfield, while Benitez, certainly last season, can partly thank Alonso for the purring engine that was Liverpool's central midfield.
The club looks likely to benefit to the tune of £30million while the fans, of course, will never forget his goal in Istanbul.
But for two seasons previous to the last one, let's not forget Alonso wasn't tearing down trees.
And yet some say Benitez is the villain for looking for a replacement to improve the side, courting Gareth Barry and offering Xabi to Juventus.
Others say now that Alonso is out of order, for wanting to return to his homeland - to arguably the biggest club in Spain - and for, if true, putting in a transfer request to make it happen (even though Benitez asked him to).
I'm not happy that he is likely to go, particularly so close to the start of the season but I can understand why he wants to leave and why Rafa wants him to go.
And if it happens, it happens. Life goes on. Liverpool Football Club will still be there.
Yes, Alonso was good last season. Outstanding, in fact. But he is one player - he didn't finish second on his own.
While I agree with many comments I have seen that it is a very difficult task to replace Xabi, I don't believe it's an impossible one.
Because I think the point everyone is missing is that Benitez clearly has a new plan in mind.
Replacing Xabi like-for-like, is difficult. There's no-one that jumps out that is a similar type of player.
But maybe Rafa doesn't want a similar player. The 4-2-3-1 set up has served us well. But last season we lost the league because we drew too many games.
So maybe Rafa has new tactics in mind? Maybe two holding midfielders is a luxury we can't afford anymore - particularly at home.
Rafa certainly seemed to be hinting at a tactical shift earlier this month.
He said: "We want to improve our power in attack, this is our idea.
“There have been games in the past we have played with three centre backs and two offensive full backs, it depends on the game.
“But normally we play with a line of four in defence because this suits the way we play on both occasions.
“We were talking last season about the draws we had at home and when teams play really deep against you you need quality in the full back and central defensive positions.
“When we talk about Daniel Agger scoring goals and using the ball well it is because we know these qualities are necessary if you want to turn the draws into wins.”So ignoring the rigidity of us definitely playing the same formation and needing 'another Xabi', things don't look so bad.
And much as I liked Alonso, and his wonderful passing, let's not forget the flaws in his game.
He didn't score enough goals. He wasn't great in the tackle.
So while it's unfortunate, it's not the end of the world if he leaves. And as for whose fault it is? Who cares!