Real Madrid are reportedly prepared to admit defeat in their pursuit of Bayern Munich defender Alphonso Davies.
The 24-year-old has spent nearly six years at Bayern Munich after he joined the German club from Vancouver Whitecaps in January 2019.
Davies has enjoyed significant success in Bavaria, winning five Bundesliga titles, three German Super Cups, two DFB-Pokals, a Champions League crown, a UEFA Super Cup and a FIFA Club World Cup.
While he has won multiple honours, there has been some speculation as to whether Davies could seek a fresh challenge when his current contract expires at the end of the season.
It was previously reported that Davies was determined to complete a move to Real Madrid, who have emerged as one of the leading contenders for his signature.
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Real Madrid deliver Alphonso Davies ultimatum
However, his agent,Nick Househ refuted any suggestion that his client had agreed a deal to join Real Madrid, insisting that there were "many options" on the table.
Los Blancos were recently given renewed hope in their pursuit after it was claimed that Househ had been angered by Bayern's behaviour in contract negotiations.
However, according to Cadena SER, Real Madrid are growing pessimistic in their bid to bring Davies to the Spanish capital.
The report claims that Bayern have stepped up their efforts by tabling two new contract offers to the player's agent.
Davies is yet to reach a final agreement with the German giants, but appears to be having some doubts as to whether to swap the Allianz Arena for the Santiago Bernabeu.
Real Madrid are yet to hear a response to their own contract offer and have now set a deadline to hear back from the Canada international.
The European champions have set a January deadline for a response, before they will start scouring the market for alternative targets.
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Why do Real Madrid want to sign a new left-back?
Real Madrid have made no secret of their desire to strengthen the right side of their defence, leading to links with Liverpool defender Trent Alexander-Arnold.
But they are also keen to bolster their left-back options, which currently consist of Ferland Mendy and Fran Garcia.
Mendy and Garcia have both been given opportunities to start on the left side of the backline this season, but there is some doubt as to whether either of the pair have what it takes to be first-choice options for the long-term future.
In fact, there is a possibility that Mendy could leave the club when his contract expires at the end of the current season.
If Real Madrid want a cost-effective replacement, they have the option to activate a €8m (£6.6m) buyback clause to re-sign Girona full-back Miguel Gutierrez.
The 23-year-old has developed into one of La Liga's best left-backs since he left Real Madrid for the Catalan club in the summer of 2022.
