Paris Saint-Germain have pulled out of the race to sign RB Leipzig forward Yan Diomande, with Real Madrid now increasingly confident of landing the Ivory Coast international.
"PSG has this evening formally withdrawn its interest in, and bids for, Yan Diomande," said a statement from the Ligue 1 and European champions given to Sky in Germany.
"The asking transfer fee and salary demands were completely disproportionate and distortive - and PSG will not break its principles of rational financial management and squad balance."
Madrid, who have already had a £85.4m (€100m) bid rejected for the 19-year-old, with Leipzig wanting significantly more to let him go, are understood to be pushing hard to finalise a deal for the player.
Real have also agreed personal terms with Diomande.
Diomande had previously indicated a preference to join PSG earlier this summer and agreed a contract with them until 2031.
Jose Mourinho's side have been active in this window as Bernardo Silva, Ibrahima Konate, Denzel Dumfries and Marc Cucurella have all been snapped up.
Liverpool have also expressed an interest in Diomande, but aren't willing to pay more than £85m.
Premier League clubs Arsenal and Manchester City also remain keen on the Ivorian.
Arsenal looking into Vinicius Jr deal
Arsenal are looking into a potential deal for Real Madrid winger Vinicius Junior.
At this point there has been no club-to-club contact, but the interest is real. Vinicius Jr is one of a number of forward targets Arsenal are exploring, with Julian Alvarez, Diomande and Bradley Barcola also players of interest.
The Brazilian international, 26, has entered the final year of his contract and if an agreement cannot be found on a new deal, Real could be open to selling, rather than lose him for free next summer.
Bayern confident of Olise stay amid Real links
Bayern Munich director Christoph Freund has rebuffed claims that Real Madrid could come in for Michael Olise.
Olise has been linked with a move to the Spanish giants but Freund says such a move is not on his mind.
"This is not a topic for us at all," Freund told reporters on Saturday.
"We are delighted that Michael Olise has returned from his holiday. He will continue to play an important role at Bayern Munich this season, just like last year."
Diomande interview: Leipzig & trials at Palace
"Everything went fast," says Yan Diomande. Indeed, it is extraordinary now to think that this time last year Diomande's entire senior career amounted to half a dozen starts for Leganes at the back end of last season as they were relegated from LaLiga.
He scored in two of those six games, against Espanyol and Valladolid. Even his team did not find the net in the other four. But the teenager did enough to persuade RB Leipzig to part with €20m to bring him to the Bundesliga. Once there, he has been a revelation.
Thrilling to watch and impossible to defend, Diomande is lightning, full of unpredictable enterprise. He has the things that cannot be coached and by listening to the things that can he is getting better. The very biggest clubs want him. The rest cannot afford him.