Spanish newspaper Sport claims Real Madrid tried to sign Sergio Aguero from local rivals Atletico Madrid last week.
Atletico turned down the bid and told their city rivals that they will have to match AgueroÃ¢â‚¬â„¢s buy-out clause of 55 million euros .
Aguero have insisted that he will never play for Real Madrid, due to that it is believed that they are reluctant to meet the buy-out clause.
Real Madrid are desperate to sign a new striker as a replacement for Robinho, who is keen on joining Premiership side Chelsea.
Los Merengues have tried to sign several star players this summer, including David Villa from Valencia and Cristiano Ronaldo from Manchester United.
Sport also claims that Manchester United and Inter Milan have considered making a move for the highly rated forward this summer.