Real Madrid will turn their attention to Everton midfielder Marouane Fellaini, according to reports.
Jose Mourinho is reportedly ready to concede defeat in his pursuit of Manchester City star David Silva, but will now look to the Belgian for midfield reinforcement.
Chelsea are also said to be chasing the 24-year-old, who has put in a string of towering performances in the Toffees' midfield over the last few seasons.
Reports are linking the Blues with a £20m bid, but Spanish paper Marca understands that Los Blancos have also joined in the race for his signature.
Fellaini arrived at Goodison Park from Standard Liege in a £15m deal in 2008.