Florentino Perez has denied Gerard Pique's claims that Real Madrid borrowed money to fund the club's summer spending spree which included the €100 million signing of Gareth Bale.
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Pique had claimed Madrid were being bankrolled by Spanish lenders, unlike his own club Barcelona who preferred to rely on home-grown stars.
AS had earlier reported it was actually the UK arm of Spanish lender Banco Santander which had helped support the record-breaking Bale deal.
According to Marca the Madrid chief told a group of socios on Wednesday evening that the Barca defender had been mistaken.
"It is not correct what Pique said," Perez reportedly said. "He is a good kid, so there is no need to keep going on about it."
The Madrid-leaning paper reported that ‘Florentino’ added that the club did not need credit from anyone to fund the deal, and Bankia was definitely not involved.
Pique’s initial comments on the subject had caused a storm in Spain, particularly as troubled lender Bankia has been bailed out by the EU due to issues around Spain’s construction bubble bursting.
"I have read that Madrid have spent €1.2 billion since 2002," Pique had said. "We have spent money as well, but we do not have Bankia."
Meanwhile, the head of Spanish construction giant ACS said plans for a redevelopment of the Bernabeu were proceeding apace.
"It will cost between €300 million and €400 million," he said. "In the next weeks the winning project will be decided."
However, progress on the much hyped €1 billion Real Madrid Resort Island -- planned for the United Arab Emirate of Ras al-Khaimah and presented amid much fanfare at the Estadio Santiago Bernabeu in March 2012 -- had stalled Perez apparently said.
"Real Madrid will not go through with the theme park which was planned for the emirate Ras al Khaimah," he said. "We will look to complete the project in another emirate."