Real Madrid have been dealt a significant blow in their pursuit of Athletic Bilbao goalkeeper Kepa Arrizabalaga after the 23-year-old Spain international signed a new contract at San Mames.

Due to be out of contract in the summer, Kepa was widely expected to seal a €25m move to the Bernabeu this month to compete with existing number one Keylor Navas.

Athletic Club v Real Madrid - La Liga

But ​Real seemingly dithered, leading to speculation over the weekend that the player had grown tired of waiting for the reigning European champions to make their move and would re-commit himself to his current club instead.

Kepa's new long-term Bilbao deal will run to the summer of 2025 and sees his previously modest €25m buyout clause now more than treble to €80m. It means Real can no longer count on snatching the Ondarroa-born stopper on the cheap.

Bilbao are notorious negotiators and usually refuse to accept anything less than full buyout clauses for their star players - as seen with Ander Herrera in the summer of 2014.

It remains to be seen where Real will turn for their goalkeeping needs now.

Long-term targets Thibaut Courtois and David de Gea are both discussing new contracts to extend their stays at ​Chelsea and ​Manchester United respectively. Real have also been linked with teenage AC Milan star Gianluigi Donnarumma in the past, but he too is tied to a long deal.