The visitors currently top Group B with six points, but Liverpool are third after losing to Basel in their last European clash.
Liverpool will have fond memories of their last meeting with Real Madrid, however, after beating the Spanish side 5-0 on aggregate in the 2008-09 competition. The Reds were 1-0 winners in Spain, before triumphing 4-0 on their own patch.
The Premier League side have only won four of their 14 home games against Spanish opposition, however, losing four times in the process. That said, they enter this match having won their last two games in the Premier League.
Real Madrid, meanwhile, thumped Levante 5-0 in La Liga at the weekend. They have won their last seven games in all competitions since losing to Atletico Madrid in September and will therefore enter this match full of confidence.
The Spanish club, who won their 10th European Cup last season, are also unbeaten in their last three trips to Premier League opposition, including a 2-1 victory over Manchester United in the 2012-13 round of 16 at Old Trafford.
Real Madrid, meanwhile, are expected to be without Gareth Bale, who is struggling with a hip injury. Should the Welshman fail to recover, Isco is expected to feature, with James Rodriguez moving into a forward area.
German international Sami Khedira is available once again, but the midfielder is not expected to be involved from the onset.
Sergio Ramos is also expected to return to the XI after sitting out the recent international break and win over Levante through injury.
Real Madrid: WWWWW
Possible starting lineups
Liverpool: Mignolet; Johnson, Skrtel, Lovren, Enrique; Allen, Henderson, Gerrard; Sterling, Balotelli, Lallana
Real Madrid: Casillas; Carvajal, Ramos, Pepe, Marcelo; Modric, Kroos, Isco; James, Benzema, Ronaldo
Sports Mole says: 1-3