Real Madrid president Florentino Perez wanted former Chelsea boss Jose Mourinho to return ahead of naming Zinedine Zidane new coach.
The Mirror says Mourinho is holding out because he wants to stay in the Premier League – and still has his sights on Manchester United.
Real Madrid sounded out Mourinho over the festive period about taking over from Rafa Benitez.
They wanted to put him back in charge because Zidane voiced concerns over whether he was ready for the role.
Real president Florentino Perez remains a big admirer of Mourinho and used intermediaries to find out whether the former Chelsea manager was interested.