Real Madrid reportedly failed in their attempts to sign forward Gabriel Jesus this summer due to his Brazilian passport.
After six trophy-laden years with Manchester City, Jesus has decided to reunite with former Citizens coach Mikel Arteta at Arsenal.
The 25-year-old has put pen to paper on a five-year contract at the Emirates Stadium in a deal believed to be worth around £45m.
However, Spanish journalist Javier Herraez claims that Jesus could have ended up at the Santiago Bernabeu this summer, with Carlo Ancelotti identifying the Brazilian as ideal competition for Karim Benzema.
Real Madrid currently have the maximum of three non-EU players on their books in the form of Brazilian trio Vinicius Junior, Eder Militao and Rodrygo, with La Liga rules stating that clubs are not allowed to exceed this limit, which has therefore prevented Los Blancos from signing Jesus.
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Speaking on the Sanhedrin of El Larguero podcast, Herraez said: "Benzema is the best, but this is a World Cup year where he is going to play with the French team. That is going to be important, and he cannot play in everything.
"Gabriel Jesus is who Madrid wanted in this moment because he knew how to be a substitute, and he played and scored goals. This footballer is not in Madrid because of the matter of his passport.
"If not, he would be because Ancelotti wanted him, as did the club. But there is no room because of the issue of the papers."
Jesus has since hit the ground running with Arsenal in pre-season, scoring four goals in as many matches including a brace on his debut against Nuremberg and a strike in the 4-0 victory over Chelsea on Sunday.
Real Madrid, meanwhile, are still thought to be on the lookout for another forward after missing out on Jesus, Kylian Mbappe and Erling Braut Haaland, although Ancelotti recently told the media that their summer transfer business is complete.
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Los Blancos have signed Antonio Rudiger on a free transfer from Chelsea and Aurelien Tchouameni for around £72m from Monaco, but Ancelotti does not intend to recruit any more players this summer.
Speaking to reporters last Thursday, the Italian said: "I can tell you we won't sign anyone. We're fine as it is."
"Tchouameni and Rudiger will bring a lot of quality to the squad. Rudiger is a great centre-back who can play in different positions, while Tchouameni is the same as a midfielder," Ancelotti added.
"He is younger but is already playing for the France national team. Competition in the squad is the key to success. They both only arrived today. Of course they'll need some time to adapt, but not too much since they have so much quality."
In terms of departures, Real Madrid have allowed six players to leave so far this summer, including Isco, Marcelo and Gareth Bale with the latter of whom joining MLS outfit Los Angeles FC.
