Real Madrid appear to have dropped their interest in signing Internazionale full-back Douglas Maicon this summer.
The Brazilian had said he would welcome the chance to move to the Spanish capital, but Real's director general, Jorge Valdano, insists £35m is too much to pay for the 27-year-old.
"We will not make that offer, as we already have Sergio Ramos in that position and Maicon is no better," Valdano told Radio Marca.
Real have already signed Kaka, Cristiano Ronaldo and Karim Benzema since the end of last season, but Valdano has hinted that another new arrival is imminent.
He added: "He is an attacking player with some similar characteristics to Kaka.
"We are looking for a more defensive midfielder to play alongside (Lassana) Diarra."
Meanwhile, AC Milan's pursuit of Brazil international Luis Fabiano looks set to reach a successful conclusion later this month.
The 28-year-old Sevilla striker's agent says his client is keen to move to the San Siro, while the Rossoneri's vice-president Adriano Galliani has confirmed he wants to sign Luis Fabiano.
Jose Fuentes told Radio Radio: "The player wants to join Milan. I am happy to hear Galliani's comments and we hope the matter can be resolved positively.
"The buy-out clause is 30million Euros but, with a bit of a push, we can reach a deal between Milan and Sevilla."
Earlier, Galliani confirmed: "Our only remaining transfer target is Luis Fabiano and then our market is closed.
"Huntelaar will go to Stuttgart. Real behaved impeccably with regards to the Dutchman, but if they receive a cash offer then they are in a great position to sell.
"There is not much else to say, we just need to find an agreement with Sevilla over the figures."
Elsewhere, Juventus president Giovanni Cobolli Gigli has confirmed that Felipe Melo is on the verge of sealing his move to Turin from Fiorentina.
The 25-year-old Brazil international is expected to move to Juve in a deal worth £21million, with winger Marco Marchionni moving in the other direction as part exchange.
"He is not our player yet," insisted Cobolli Gigli. "There have been and there are some negotiations, but the official completion of the operation is still missing.
"When it is all official, you will be told. The matter has not yet been concluded, but I hope it will be soon.
"Marchionni to Fiorentina? The details will emerge later on."