Real Madrid Transfer News Roundup: Los Blancos suffer Kylian Mbappe setback; Luka Modric unhappy at Santiago Bernabeu, and more - August 25, 2023

Real Madrid have enjoyed a stellar start to the new season. Carlo Ancelotti 's team missed out on the league as well as UEFA Champions League last campaign and are determined to fight for both trophies this campaign.

Meanwhile, Los Blancos have suffered a setback in their plans to sign Paris Saint-Germain striker Kylian Mbappe. Elsewhere, midfielder Luka Modric is unhappy at the Santiago Bernabeu.

On that note, here's a look at the key Real Madrid transfer stories as on August 25, 2023:

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Real Madrid suffer Kylian Mbappe setback

Kylian Mbappe could sign a new deal in Paris.

Real Madrid have suffered a blow in their pursuit of Kylian Mbappe. According to Sky Sports, the French forward is in talks with Paris Saint-Germain regarding a new deal. Mbappe's contract with the Parisians expires at the end of this season, and he was previously reluctant to sign an extension.

Los Blancos are long-term admirers of the 24-year-old, who has been at the top of their wishlist for a while. The La Liga giants failed to sign the player in the last two summers and are now planning to lap him up for free in 2024. He has been identified as the perfect replacement for Karim Benzema, who left for Saudi Arabia this summer.

It was previously believed that Mbappe was also eager to move to Real Madrid. However, the Frenchman has reportedly had a change of heart, likely following a recent conversation with Parisians president Nasser Al-Khelaifi. The 24-year-old is now willing to put pen to paper on a new deal that will keep him at the club beyond next summer.

There are two options on the table for Mbappe to consider. He could exercise a previous option in his contract which will keep him in Paris till 2025. The Frenchman could also opt for a lengthier deal.

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Luka Modric unhappy at Santiago Bernabeu

Luka Modric has struggled for game time this season.

Carlo Ancelotti has admitted that Luka Modric is unhappy at the Santiago Bernabeu.

The Croatian midfielder has been a first-team regular for Real Madrid in recent campaigns but has dropped down the pecking order this season. The 37-year-old has started both games for Los Blancos from the bench.

Speaking to the press, as cited by AS, Ancelotti added that he's not worried about Modric leaving for Saudi Arabia.

"No (not worried about Luka Modric leaving for Saudi Arabia). Luka has decided what he wants to do. It’s not the usual thing for him. He's not playing as normal. Obviously he’s not happy, but he’s doing great.

"He will contribute. There is no problem. For everyone, including myself, it’s strange not to see Modric start from the beginning. But he will contribute as he has done in previous seasons," said Ancelotti.

The Croatian signed a new deal with the La Liga giants that keeps him at the club till next summer.

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Carlo Ancelotti says Los Blancos' summer business over

Carlo Ancelotti has confirmed that Real Madrid won't sign any more players this summer.

The La Liga giants roped in Jude Bellingham, Joselu, Fran Garcia and Arda Guler in the ongoing transfer window. Goalkeeper Kela Arrizabalaga joined on loan from Chelsea to address Thibaut Courtois' injury.

Los Blancos remain linked with further additions as the window draws to a close. However, speaking to the press as cited by Marca, Ancelotti confirmed that the club's transfer business for the year is over.

"There won't be any more signings, I can assure you 100 percent. I think our squad is finalised, and everyone is focused on this season. Some who are here may change their minds, but we're not worried about that," said Ancelotti.

Real Madrid are linked with defensive reinforcements to address the long-term ACL injury to Eder Militao.