Real Madrid president Florentino Perez has told "El Primer Palo" that no negotiations have taken place with Manchester United about Alvaro Morata, although he suggested he is aware that the striker's representatives have been speaking with the Premier League club.
Morata, 24, has been heavily linked with a move to United in recent weeks, with the Spain international's agent Juanma Lopez having said his client could leave Madrid this summer to gain more regular football.
Recent reports in both Spain and England have claimed that personal terms have been agreed with United, but Madrid are holding out for a fee of at least €80 million for a player who scored 20 goals despite limited playing time last season.
Madrid chief Perez says that as far as he knew there had been no formal talks with United about a fee and some of the media reports he had seen were false.
"I believe we are not negotiating with Manchester United, which does not mean that there are not people around him who are talking, which is normal," he said. "I have read that we have reached an agreement for I don't know how many million euros, but it is not true."
Last summer, Madrid were widely linked with a move for then-Juventus midfielder Paul Pogba, who instead joined United for a world record £89.3m.
Perez said the back-to-back Champions League winners had considered signing the France international, but decided he was not needed in their first XI.
"We did not sign Pogba [last summer] as we had a great team, as was shown," he said. "We have not needed Pogba. Plus, the players must have a space [in the team] to be able to improve, and last year I did not see it with him."
Meanwhile, former Madrid player and coach and ex-Spain boss Vicente Del Bosque has told AS that Morata might be tempted to leave the Santiago Bernabeu for regular football ahead of next summer's World Cup in Russia.
"The most important thing for [Morata] is to play, but I believe he is very good at Real Madrid," Del Bosque said. "It is a pity if he leaves, but it has always enriched our football for players to go abroad and be able to play. It will be no problem for the Spain team, although Spanish football would lose a great player."