Real Madrid do not want Gareth Bale to leave the club to sign for another team in the Champions League in a cut-price deal, Sky Sports News understands.
The club's hierarchy believes the relationship between head coach Zinedine Zidane and Bale has irretrievably broken down, despite maintaining hope that it could be mended during their recent pre-season tour of the United States.
Real announced their squad for the Audi Cup with Bale's name missing from the 24-player list.
Jiangsu Suning signed Ivan Santini from Anderlecht on Monday, all but ending the possibility of Bale joining the club, with the Croatian striker taking up the foreign player spot previously held back for the Real forward.
Speaking to Sky Sports News, Bale's agent Jonathan Barnett said: "Any stories suggesting that Gareth or his family were the reason the deal did not take place are completely false."
Other reports suggest Real president Florentino Perez changed his mind at the last minute, before telling Jiangsu Suning they could not have Bale for free.