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Real Madrid have reportedly ruled themselves out of the race for Crystal Palace captain Marc Guehi as Liverpool and Bayern Munich lead the chase for his signature.
The 25-year-old England defender is expected to move on next summer after deciding not to extend his contract, which runs until June 2026. He will be free to negotiate a pre-contract agreement with overseas clubs from January 1.
Guehi was one of several options considered by Madrid as they assessed centre-back targets across Europe, but the Spanish giants have now walked away from the deal, according to reports in Spain.
AS claim that Guehi's salary and signing-on demands are deemed too high for a move to proceed.
It represents the latest twist in a saga that began when Liverpool came within minutes of signing Guehi on deadline day.
A £35million fee had been agreed and the player completed a medical before Palace blocked the transfer after failing to find a replacement.
Real Madrid have reportedly ruled themselves out of the race for Crystal Palace captain Marc Guehi
Reports in Spain claim that Guehi's salary and signing-on demands are deemed too high for Madrid to proceed with a move
Palace chairman Steve Parish later argued that keeping his captain was essential to avoid 'breaking down the fabric of the team'.
He told Men in Blazers podcast the club could not afford to weaken themselves further after previous high-profile departures.
'Marc was great about it as a person,' Parish said. Liverpool made the offer. It was a massive club, he was obviously interested in going. But he was fine about it, staying, if that was the decision we made.'
Guehi has since been praised for his professionalism and influence under Oliver Glasner, who confirmed last month that the defender had turned down a new contract in pursuit of what he described as 'something different'.
Spanish outlet AS reported that Madrid's scouting team had tracked Guehi alongside Dayot Upamecano, Ibrahima Konate and William Saliba before ruling the deal out as 'virtually impossible'.
They suggested Liverpool and Bayern Munich are now leading the race.
The Palace captain's performances continue to justify that attention. He helped lead his club to last season's FA Cup victory over Manchester City and the Community Shield, and remains one of the Premier League's most reliable defenders.
Speaking to TNT Sports in October, Guehi said the collapsed Liverpool transfer was quickly forgotten.
Palace chairman Steve Parish claimed that keeping his captain was essential to avoid 'breaking down the fabric of the team'.
'The sun goes up, the sun goes down, life goes on,' he said. 'That's my mindset.'
Bayern Munich are also believed to have met his representatives in recent weeks as they prepare for possible defensive changes next summer, while Liverpool retain long-term interest.
