reports that the Spanish champions have focused their attentions on Valencia after Aston Villa indicated they were unwilling to part with Ashley Young.
Madrid have already informed Wigan of their interest, but insist they will not pay over the odds for the Ecuadorean.
"We recognise the quality of the player, but we can't raise our bid, " said a Madrid source.
Meanwhile, Wigan manager Steve Bruce is optimistic about his side's chances against Tottenham on Sunday after a number of his senior players returned to fitness
'[Emile] Heskey, Amir Zaki and Mario Melchiot are all back training, and Ryan Taylor should be OK too after a bit of a hamstring problem,' said Bruce.
'Lee Cattermole is available after suspension while Paul Scharner came off with an Achilles problem at Spurs but will be all right for Sunday.'
Antoine Sibierski, the French forward who has been on loan at Norwich, will also return to the club following the completion of his spell at Carrow Road.
"Sibi is due to come back and I've no problem about that happening," added Bruce.
"The loan has served its purpose as Sibi has got some games under his belt and would be available for our squad.
"At the moment there hasn't been an approach from Norwich to take him for longer, so I assume he will come back to us.'