Real Madrid executive director Jorge Valdano has revealed that his club will no longer pursue the transfer of David Villa.

Valencia, who had looked set to cash-in on their star striker during the close season seem to have made a sudden U-turn over the past few days by declaring Villa is "indispensable" after failing to receive any official offers to their liking. 

Valdano, speaking to Spanish radio station RNE reacted by saying "There is no possibility of negotiating with Valencia.

"For the signing to go through, there has to be an agreement between three parties and Valencia have now changed their mind and they do not want to sell. If this is the case, then we have to respect their decision.

"I know [Valencia president] Manuel Llorente and how he defends the interest of the club. The same thing happened to us with Roberto Ayala.

"In the last day of negotiation, we were ready to pay what they had demanded from us, but they backed down. And because of that, we had to play a full season without a central defender.

"We are not going to face another full season again without a footballer. We will sign Villa if there is an agreement, otherwise we will look for another option," he added.

When asked about the possibility of Madrid now moving for Diego Forlan, Karim Benzema or Zlatan Ibrahimovic, Valdano replied cagily, "They have enough quality to play for Madrid, but I will not say if we are talking to them or not."

The Argentine director general then admitted that the gargantuan transfer fees involving Kaka and Cristiano Ronaldo has come back to haunt the club for the remainder of the summer trade period as they have now gone cold following a 160 million euro spending spree in the space of a week.

"Kaka and Cristiano are incomparable players and we have paid exactly what they are worth," he explained.

"But now, clubs are coming back to us and demanding ludicrous amounts of money for their players because of what we paid for the Brazilian and the Portuguese.

"What we will do now is wait for the market to cool off because we are not willing to simply accept just any conditions," he stressed.