Lucas Vazquez has turned down the chance to join Atletico Madrid and is expected to sign a new Real Madrid contract.
Vazquez's current deal is set to expire at the end of the season, with reports throughout the campaign suggesting that he may leave on a free.
More recently, it seemed that a breakthrough was near and AS are now reporting that the versatile Spaniard is on the verge of agreeing a three-year extension. Atletico are believed to have sent over a proposal to Vazquez but he turned the offer down swiftly. Other than a brief spell with Espanyol he has been at Real since his youth team days and felt uncomfortable making the cross-city switch.
The breakthrough in negotiations came after Los Blancos raised their offer from €3.5m to €5m-per-year. Now, it's said only a late breakdown in talks will prevent Vazquez remaining at the Santiago Bernabeu beyond the end of the season.
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Milan are understood to retain a keen interest in the player and although they have presented a concrete offer to Vazquez, a move is looking increasingly unlikely. The player is even willing to accept less than the €5m currently on the table in order to stay at his boyhood club.
Vazquez had been featuring regularly for Real before picking up a season-ending knee injury during El Clasico in April. Prior to that he had made 34 appearances in all competitions, the majority of which came at right-back although he also featured on the wing. He has scored two goals and registered eight assists this season.
His injury means he will be absent from Real's crucial Champions League semi-final second leg against Chelsea on Wednesday. The scores are currently level at 1-1 with Karim Benzema's fine strike cancelling out Christian Pulisic's opener in Madrid last week. The winner of that tie will face either Manchester City or Paris Saint-Germain in the final.