Real Madrid have moved to dampen speculation that they are set to launch a summer bid for Arsenal captain Cesc Fabregas.
The Gunners held onto the 23-year-old last summer in the face of two bids from Barcelona - despite Fabregas' desire to rejoin his boyhood club.
While Barcelona appear to have gone cold on the idea of signing Fabregas, with Carles Rexach admitting any deal would be "difficult", reports have suggested Real are keen to swoop for the midfielder.
There were even suggestions that the Madrid side launched a €65 million bid in January - but director general Jorge Valdano has rejected this speculation.
"We never made an offer for him [Fabregas] and we haven't spoken with Arsenal either," Valdano told Canal+. "We have a good relationship with Arsenal and we don't want any misunderstanding."
Valdano also denied suggestions that defender Pepe's future could be in doubt with his contract expiring at the end of next season.
Valdano said: "He has shown he is a great player. We are making progress in the negotiations and we hope to reach a solution. Last season these questions were about (Gonzalo) Higuain and in the end we resolved them. He's an important player and so we are making an important effort.''
When he was asked about the situation, Pepe said: "I'm not going to talk about this issue. At the moment I can only say that I'm happy at Madrid and that the fans treat me very well. I'm going to do everything possible to stay.''
Pepe also refused to debate a supposed offer from Barcelona, adding in As: "I'm a Madrid player and it's a lack of respect for the Madrid fans to enter into this. I'm happy in Madrid.''