The Basque native was on the verge of joining Juventus earlier in the summer, but that move collapsed due to the Reds' refusal to lower their £16million asking price.
Despite lingering interest from Arsenal in particular, it appeared until recently that the 26-year-old would remain at Anfield given his impressive form during the summer, both at EURO 2008 and in pre-season.
However, the revelation that Liverpool's co-owners recently vetoed the Barry deal has put Alonso in the shop window once more, as it is understood there is room (or funds, perhaps) for only one or the other.
And while Benitez hinted that he would much rather keep hold of his chief playmaker, he admitted that the confusion over the club's monetary situation has complicated matters.
He said: "When I was first talking with Xabi (about a transfer) we needed money. After these months it is not a question of money. We would have to have a massive offer because Alonso is a great player.
"But if we sell one or two players we have enough money to bring in one more good player.
"Don't forget we will need eight British players - and the left-footer we were talking about can play in three positions too."
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