Real Madrid president Florentino Perez claims he is ready to walk away from deals this summer if asking prices remain high.
Liverpool are reported to want £30m for Spain midfielder Xabi Alonso, substantially above Real's valuation.
Perez insists that despite his club's massive outlay on the likes of Cristiano Ronaldo and Kaka this summer, they will not pay over the odds for any remaining targets.
"Some people obviously thought that because we said we wanted more Spanish players, they could ask for fees which don't correspond to reality," Perez told the Daily Telegraph.
"A year ago, certain players we've asked about would have cost less than half the price we're being quoted now.
"If necessary, we'll find the Spanish players we would like for the squad in our youth system."Reuse content