Real Madrid made a £130m bid for striker Julian Alvarez from city rivals Atletico Madrid, fulfilling a campaign promise from president Florentino Perez. The bid for the 26-year-old Argentina international was immediately rejected by Atletico, who cited the player's €500m release clause in their response.

The former Manchester City player joined Atletico in an £81.5m deal last year and made an immediate impact, scoring 20 goals in 49 appearances as the club finished fourth in La Liga and reached the Champions League semi-finals. Alvarez, who won the 2022 World Cup with Argentina, has become a key figure for Atletico since his arrival.

Real also confirmed head coach Alvaro Arbeloa will leave the club with Jose Mourinho set to return in his place. The departure follows a trophyless season for Real, with Arbeloa having replaced Xabi Alonso in January. Re-appointing Mourinho, who previously managed Real from 2010 to 2013, was a key manifesto point in Perez's successful re-election campaign.