Cambiasso to stay in Madrid
Cambiasso has struggled to establish himself in the Spanish capital since signing for Real six years ago when he was just 15-years-old.
The midfielder has spent time back in his homeland with Independiente and River Plate in order to accrue valuable first team experience.
He had been expected to join Alaves on loan this season with all parties seemingly concurring on the deal.
But the 21-year-old has earned a reprieve after Real sporting director Jorge Valdano told him he would be in coach Vicente Del Bosque's plans for the coming campaign.
"Everything was arranged with Alaves to play there this year but Jorge Valdano called us to say that I wasn't going anywhere, that I will be staying at Madrid," said Cambiasso.
"He spoke with my father and he told him to start finding me a house to live in because I was going to be part of the squad for the next season.
"That was what I always wanted so I am very happy about it."
Cambiasso also refuted suggestions that his elevation in the Real pecking order was due to his good relationship with his compatriot Valdano.
He added: "Jorge isn't my endorsement to be here, my endorsement is my way of playing, not Valdano.
"Nobody can endorse a player if that player doesn't fight for it. If I am at Real Madrid it is because I made a big effort and now I have the chance."