Real Madrid are reportedly ready to 'pull the plug' on their long-standing transfer interest in Bayern Munich defender Alphonso Davies.
Los Blancos have been tracking the Canada international for over 12 months as contract talks between his representatives and the Bundesliga giants appeared to have reached a dead end.
With Davies' current deal at the Allianz Arena expiring at the end of the 2024/25 season the 24-year-old is eligible to start free transfer negotiations with a view to a summer move.
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However, as per the latest update on his situation in Bavaria, reports from Diario AS indicate Bayern Munich's final renewal offer has now been accepted.
The crucial turning point appears to be the willingness to increase a salary offer from £11m ($13.4m) to £12.7m ($15.5m) annually which had been Davies' request all along.
Faced with the prospect of losing a star player, the fresh package matches what was reportedly put forward in Madrid, and Davies could now remain in Munich on a long-term contract.
The La Liga champions are now expected to pull out of the race, if Davies accepts, and no further offers will be made to him.
Losing out on Davies is a blow for Carlo Ancelotti, as it means missing out on half of his defensive transfer plan for 2025, with Trent Alexander-Arnold now the primary focus.
Alexander-Arnold's contract situation mirrors Davies' in Munich and the England star remains undecided over Liverpool or Madrid for next season.