Liverpool must move quickly to find a replacement for Mo Salah who has not yet extended his contract. They need to bring in a quality player as Mo Salah successor because the position is very central and requires balance to maintain the sharpness of his mini attacks. Rodrygo is still young, he also has the quality to enter Liverpool main line up.
Real Madrid must view Liverpool's interest in Rodrygo as a threat and Ancelotti must pay more attention to prevent the player from turning his attention to other clubs. If he gets guarantees in Ancelotti first team squad, maybe he will stay.
Waiting too long to give a new contract will only make things more complicated for them as his decision could get influenced easily if a new club offers him a better contract. He is an important player for the team and they should do everything possible to try and keep him for an extra season at least until they get a good replacement for him. If they lose him without bringing in a successor. Rodrygo is capable of bringing balance to the team as Salah’s replacement because he has good quality as well but will Real Madrid want to exchange old player like Salah with a young player? It will be a bad business for them because Salah can’t promise to play for long anymore.
Both players are capable of breaking into the first eleven if they eventually make the swap but I doubt if it will happen.