Madrid had been linked with moves for both Nesta and Italian counterpart Fabio Cannavaro of Parma this week, but the Spanish club's sports director, Jorge Valdano has confirmed that they have set their sights solely on Lazio's 24-year-old stopper.
"The only player that we are interested in is defender Alessandro Nesta," said Valdano.
"We want to have a transfer campaign like we had last year. Then we brought in only one big name - but a very important one for us - and that was Luis Figo."
However, a spokesman for Lazio president Sergio Cragnotti has insisted that the club are not looking to dispose of the defender's services, saying: "We are not thinking about selling Nesta."
It would seem that Real were looking to offer the Serie A club a package worth around £30 million, which may have involved a player as part of the deal and could have incorporated payment in instalments, as the spokesman added that the club would consider a slightly larger offer if it was a straight cash deal.
"Whoever wants Nesta must come to us with 50 million dollars (£33 million) cash. No swaps, no delays in the payment," added the spokesman. "That's the only option we could give some consideration to."
Nesta is contracted to Lazio until 2005 and he said when he signed that deal last year that he has no intention of quitting the club that he loves, adding that he sees himself ending his career at the Rome club.
"My love for Lazio has deep, strong roots. I have loved the club since I was a child," he said.
"There is no need to go to the north [of Italy] to achieve success. We have proved that. You can also win here, in Lazio. My wish is to remain at Lazio forever."
