Real Betis president Juan Carlos Ollero says Real Madrid have not made an approach for Dani Ceballos and he is "certain" the midfielder will stay.
Ceballos, 18, is contracted to Betis for another season but, because he is under the age of 23, the club can automatically extend his contract for a further year on the condition that they increase his wages.
Marca has reported that Real plan to acquire the Spaniard, whose buyout clause stands at €12 million, and then loan him to Betis for the 2015-16 campaign.
As part of the deal, Marca said Real were willing to loan 19-year-old Spanish winger Marco Asensio to Real Betis for the coming season.
When asked if the player would continue at Betis for the 2015-16 campaign, Ollero said as reported by Spanish radio station Cadena Cope: "I'm certain.
"I would think Real Madrid would have the sufficient courtesy to approach us. The intention to renew Ceballos' contract is something that we have wanted to do since September of last season."
Ceballos, who recently won the UEFA European Under-19 Championship with Spain, scored five goals in 32 league appearances in the Segunda Division this past season to help Betis gain promotion to La Liga.