Madrid were knocked out of the Champions League by Bayern Munich on Wednesday in a 6-4 aggregate defeat that effectively ended their season. They are also nine points adrift of Barcelona in La Liga with seven games remaining, leaving a second consecutive trophyless campaign as the likely outcome. Arbeloa took charge in January as an interim appointment following the sacking of Xabi Alonso, and he is expected to depart when the season concludes.
Florentino Pérez is said to admire both candidates, reports the Daily Mail.
Klopp remains the preferred option at the Bernabéu, rated highly by the Madrid president for his charisma, tactical record and experience managing elite dressing rooms. The German won the Premier League and Champions League with Liverpool before leaving Anfield in 2024 and taking a senior advisory role with Red Bull's global football operations. He has previously described reports linking him directly with Madrid as "nonsense," and publicly indicated little desire to return to management, though those close to the story suggest the appeal of the Bernabéu job may be difficult to resist indefinitely.
Pochettino is the other name on the shortlist. The Argentine is currently managing the United States ahead of this summer's World Cup, and his contract with the national team expires after the tournament. Pérez pursued him on two previous occasions — during his time at Tottenham Hotspur and later at Paris Saint-Germain. Pochettino also shares a working history with Kylian Mbappé from their time together in Paris, which could ease any transition at the club. At 54, he is widely considered one of the most coveted coaches available.
Zinedine Zidane and Didier Deschamps — whose France contract also expires after the World Cup — have also been mentioned in connection with the role.