Real Madrid director general Jorge Valdano insists the Spanish giants have not been in contact with Arsenal regarding a possible move for Cesc Fabregas.
Fabregas has long been linked with a return to Spain with both Barcelona and Madrid, and recent media speculation has been of a possible 60million euro summer swoop by Madrid for the Gunners captain.
Valdano denies they have made an offer for the 23-year-old Spain international, though, saying: "We've not made any move for Cesc. We've not made an offer or entered into talks.
"We have a good relationship with Arsenal and we don't want any misunderstandings."
Speaking to Canal+ following Madrid's 1-0 Primera Division win over Espanyol, Valdano also spoke about centre-back Pepe's contract situation.
Pepe's existing deal is due to run out in 2012 and there has been speculation the Portugal international, 27, might be on his way out of the club with the two parties yet to agree a new deal.
Valdano said: "He has shown he is a great player. We are making progress in the negotiations and we hope to reach a solution.
"Last season these questions were about (Gonzalo) Higuain and in the end we resolved them. He's an important player and so we are making an important effort."
When he was asked about the situation, Pepe said: "I'm not going to talk about this issue. At the moment I can only say that I'm happy at Madrid and that the fans treat me very well. I'm going to do everything possible to stay."
Pepe also declined to talk about any supposed offer from Barcelona, saying in AS: "I'm a Madrid player and it's a lack of respect for the Madrid fans to enter into this. I'm happy in Madrid."