Real Madrid have all but given up hope of being able to sign Spain striker David Villa from Valencia this summer.
Sporting director Jorge Valdano had been leading the negotiations to try and take Villa to the Bernabeu, with Chelsea having also been heavily linked with the 27-year-old.
However, Valdano told Radio Nacional de Espana: "There is no possibility of negotiating with Valencia.
"For the signing to go through, there has to be an agreement between three parties and Valencia have now changed their mind and they do not want to sell.
"If this is the case, then we have to respect their decision.
"I know Valencia president Manuel Llorente and how he defends the interests of the club."