Spain international Carvajal, who rejoined Real from Bayer Leverkusen in June 2013 having come through the team's youth ranks, has been a regular at right-back at the Santiago Bernabeu this season.
However, his place will come under threat next term after Real announced that Danilo would be arriving in a big-money move from the Portuguese side.
Carvajal, though, is unperturbed and feels that his long-term future remains with the European champions.
"The signing of Danilo is good," he said after Real's 2-0 win at Rayo Vallecano on Wednesday. "We are at the best club in the world and competition is always good.
"It's normal that we compete with the best in the world.
"Right now Danilo is not here. I will be with him next year and I will compete with him and we will try to play as much as possible.
"A few days ago I read an article that saying I want to go. Far from it. This is my home and I am going to give it all for this badge."
