Liverpool suffered a defeat in their first game of 2021 when they were beaten by a well-drilled Southampton side on Monday. With the transfer window now open, the Reds could splurge to improve their squad amidst injuries to some of their key players. On that note, let’s take a look at the latest Liverpool transfer news as on 5th January 2021.Liverpool might not go after a marquee signing in JanuaryAlthough Liverpool have been linked with adding fresh faces this month, Fabrizio Romano has claimed that the Reds may not spend big.Liverpool strengthened their team last summer, but injuries to key defenders and new signing Diogo Jota has forced Jürgen Klopp into using some of their fringe players.Romano has hinted that Liverpool may not want to spend big money in the ongoing transfer window so that they could sign someone big in the summer. Over the years, Liverpool have not been open about the players they want to sign, so it remains to be seen which big-name player could they target come July.NEW🗣 @FabrizioRomano: “Liverpool don't want to spend a lot of money in January transfer window, they are planning for something interesting next summer." [@QueGolazoPod] pic.twitter.com/Qx21YLBh22— The Anfield Talk (@TheAnfieldTalk) January 5, 2021Liverpool make contact with David Alaba’s agentDavid Alaba is a player in much demand, as he will be a free agent in the summer and is still at the peak of his career at 28. Several top sides, including Real Madrid and Liverpool, are in the race to sign Alaba, as per Fabrizio Romano.The Reds are behind Real Madrid at the moment, with Romano claiming that Alaba dreams of playing for the Whites. However, Liverpool signed former Bayern Munich midfielder Thiago Alcantara in the summer and hope to be able to persuade his former teammate as well.Liverpool are among the five clubs that have contacted David Alaba agent to sign him next summer. 🔴 #lfc...but Real Madrid are leading the race, they’re pushing to sign Alaba and David dreams of playing for Real Madrid. And talks with Real are progressing, as said yesterday. https://t.co/LITUivZexn— Fabrizio Romano (@FabrizioRomano) January 5, 2021Liverpool could do with a defensive addition to their squad, as they have been playing with Fabinho as a makeshift centre-back for weeks now. They faced Southampton on Monday without a recognised centre-back in the team.Mohamed Salah is Real Madrid’s ‘No. 1’ targetMohamed Salah has been linked with a move away from Liverpool. The speculation started after the player's interview with the Spanish press where he said that he was disappointed after being overlooked for captaining the side in a dead-rubber Champions League game last year.There aren’t too many clubs who can afford Mohamed Salah in the current market due to the pandemic situation. However, out of those who can, Real Madrid are one of them.As per talkSPORT’s transfer expert Alex Crook, Real Madrid are expected to make a move for Salah next summer.“My sources in Spain are now telling me Real Madrid have made Salah their number one target for next summer,” Crook said.