Real Madrid are ready to swoop when David Alaba's contract expires next summer, surging ahead in the race for the Bayern Munich star as Manchester United duck out.
The Austrian will have six months to run on his deal with the German champions in January, and will be free to discuss a move elsewhere having rejected a £200,000-per-week offer.
Bayern have admitted defeat with Karl-Heinz Rummenigge claiming they 'did everything' to reach a renewal.
While Man United have now backed-out of a move after learning of Alaba's steep wage demands, Real Madrid look best-placed to complete the free transfer, according to the Athletic.