Manchester City are unwilling to meet Real Madrid's valuation for midfielder Mateo Kovacic, according to Sky sources.
The Premier League champions are considering a move for another central midfielder this summer after their number one target Jorginho signed for Chelsea.
Kovacic - a key member of the Croatia squad that reached the World Cup final - is one player they have looked at but Real's reported asking price of £80m is considered too high.
City have also shown interest in Mario Lemina from Southampton, but despite losing out on Jorginho it is not certain they will strengthen before the transfer window closes in August.
It is understood City boss Pep Guardiola is happy with his squad as they prepare to fly to the USA on Tuesday for their pre-season tour.
City broke their transfer record last week when they completed a £60m deal for Riyad Mahrez from Leicester City.
Their first game of the Premier League sees them head to Arsenal on August 12, live on Sky Sports.