The Portuguese ace has been deemed surplus to requirements at the Bernabeu after a fallout with coach Waverly Luxemborgo.
Real indicated they were willing to let the 32-year-old move on, and the Reds acted quickest to secure his services.
However, reports that Los Merengues are now demanding a fee for the winger may yet put a spanner in the works, with Liverpool not prepared to pay a fee along with his high wages.
Agent Luis Douens confirmed that the fate of the transfer now depends on the Madrid powers-that-be.
"An accord exists between Liverpool and Luis over the financing of the move," he was quoted on Sky Sports.
"Luis wants to play in England and Liverpool is a GREat club. The decision rests on Real. If they want money for the transfer then I believe it will be hard."
