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The pundit also questioned England manager Thomas Tuchel's decision to exclude Alexander-Arnold from the World Cup squad in favor of Reece James, Tino Livramento, and Djed Spence.
He noted that the defender's unique attacking skillset would have been valuable against defensive opponents.
"England need something a bit different in certain games and he definitely gives you something different," Sheringham said, adding that Alexander-Arnold is "not Gary Neville" but a player who can "come up with something from another angle."
Despite the rumors, Alexander-Arnold indicated his commitment to Real Madrid in an Instagram post at the end of the season.
"Madridistas, you have welcomed me with open arms... I promise we will bring trophies back to this amazing club next season!"
he wrote.
Former Liverpool player Danny Murphy told beIN Sports that while leaving Anfield creates psychological hurdles, the player remains composed.
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However, Murphy noted that a return to Liverpool is highly unlikely due to the nature of his departure on a free transfer and his high salary demands.
