David De Gea transfer latest: Real Madrid sign Kiko Casilla hinting that Spaniard will stay at Manchester United at least one more season

De Gea is available on a free next summer

(Getty Images)

Real Madrid have announced the signing of goalkeeper Kiko Casilla from Espanyol.

The 28-year-old still needs to complete a medical, but a €6million (£4.2m) fee has been agreed to bring the former youth team player back to the Bernabeu.

Casilla, who has one cap for Spain, never played for the Real Madrid first team but made a handful of appearances for the B side. With club legend Iker Casillas departed for Porto, Rafa Benitez was short a goalkeeper with only Keylor Navas in the squad.

Navas was bought for €10m last summer and the signing of Casilla appears to hint that Real Madrid will give up the chase for Manchester United No 1 David De Gea, at least for this summer.

With the 24-year-old goalkeeper out of contract next summer, and United determined to only sell for market value, Real Madrid appear patient enough to wait until this time next year when they can get him for nothing.

De Gea in training in the US (Getty Images)

Reports in Spain suggest that Real Madrid will pay De Gea a €5m (£3.47m) signing-on fee to ensure he doesn't agree an extension to stay at Old Trafford beyond next season.

Furthermore, Louis van Gaal may wish to keep De Gea for one more season while he searches for a suitable No 1, especially now Victor Valdes is to leave.

Tottenham will put a big price-tag on Hugo Lloris, who has also fractured his wrist, while Ajax stopper Jasper Cillessen is likely to cost more than £20m Free agent Sergio Romero is linked with the club but he is seen as a No 2.

Van Gaal has admitted that he wants "at least two" more players before the start of the season, but United have greater need at centre-back and up front.