Real Madrid are not hopeful of being able to agree a fee with Liverpool to sign Spain international Xabi Alonso.
The 27-year-old former Real Sociedad midfielder has been targeted by the big-spending Spanish side this summer, but sporting director Jorge Valdano has conceded that the two clubs are poles apart when it comes to valuing the player.
"Xabi Alonso is a priority if he fits into our budget and this doesn't seem the case," he claimed.
"We are very far from the figures that Liverpool have set out.
"Liverpool have taken up a difficult stance over Xabi Alonso. I don't like to talk about the private details of negotiations.
"We are studying many alternatives. We want someone who can channel the play and there aren't many like that in the world."
Alonso almost left Anfield 12 months ago with Juventus keen to lure him to Italy.