According to the Daily Mail, Madrid no longer want to sign Neymar because they want to sign his team-mate Kylian Mbappe in summer 2020 instead.
It's believed that Neymar's priority is a return to Barcelona, but he would have been open to a move to Madrid.
Barcelona have so far only offered player-plus-cash deals for the Brazilian, which PSG have rejected out of hand.
The French champions are reportedly insistent on being willing to accept cash bids only.
Real Madrid president Florentino Perez is understood to find the commercial value of signing Neymar very attractive, but Zinedine Zidane is opposed to a deal.
Zidane is apparently supported by club directors and fans alike in not supporting a bid for Neymar.
It's thought that Madrid's long term plan is to go all out for Mbappe next summer, when they believe they can secure the 2018 World Cup winner for the best period of his career.
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