The centre-back, who is out of contract at the end of the season, has recently been linked with a switch to Tottenham amidst reports he is unhappy with his salary in Spain.
Manchester City are also thought to be tracking the World Cup winner as manager Mark Hughes looks for experience at the heart of his defence.
However, Cannavaro's representative - Enrico Fedele - claims the player is happy at the Bernabeu and that contract negotiations have only been delayed due to the club's approaching presidential elections.
"Cannavaro has been misquoted in the media," Fedele told Radio Kiss Kiss.
"Some of the things attributed to him were said a while ago in older interviews.
"He has never talked about economic issues and he wants to stay at Real Madrid.
"The only reason we haven't been able to set up talks for a contract renewal is that the presidential elections are coming up."