Marc Guehi’s dreams of a move to Real Madrid look dead in the water after the Crystal Palace captain’s wage and signing-on demands reportedly forced Los Blancos to walk away. The England international, who is out of contract in 2026 and refusing to extend, is now expected to stay in England, with Liverpool leading the race for his signature next summer, while Bayern Munich remain interested.

Real Madrid priced out of Guehi transfer race

Real Madrid look set to pull out of the race to sign Crystal Palace centre-back Guehi, with Spanish outlet AS reporting that his high wage and signing-on demands have made the transfer “virtually impossible.” The 25-year-old, who has just 18 months left on his current contract, is widely expected to leave Selhurst Park next summer after declining multiple renewal offers. The Eagles have already accepted that their captain intends to move on, but Real Madrid, who were keen to bring in a long-term defensive reinforcement, have been priced out.

Sources close to Los Blancos suggest that Real’s recruitment team were impressed with Guehi’s performances in the Premier League and on the international stage but were unwilling to match his financial expectations. Guehi’s camp had reportedly sought a significant pay rise and a multi-million-pound signing bonus, terms which exceeded the club’s internal wage structure. As a result, Real Madrid have turned their attention elsewhere, leaving Liverpool and Bayern Munich as the frontrunners for the England defender’s signature.

Guehi will be eligible to negotiate a pre-contract agreement with overseas clubs from January 2026, though several Premier League sides are expected to make renewed efforts to sign him before then. Liverpool, who came close to securing his services this past summer, are considered favourites to finalise a deal after Real’s withdrawal. However, Bayern Munich’s growing interest could yet complicate matters in what promises to be a major transfer battle.

AdvertisementGetty Images SportReal Madrid planning for the future

Real Madrid’s withdrawal from the race is less about Guehi’s ability and more about their evolving defensive strategy heading into 2026. The club is actively seeking to reinforce its backline amid a mounting injury crisis and long-term uncertainty surrounding key defenders Eder Militao, David Alaba and Antonio Rudiger. With all three battling recurring injuries or approaching the final year of their contracts, Madrid are under pressure to secure a new defensive leader for the next cycle.

Militao has endured back-to-back ACL tears across consecutive seasons, while Alaba’s fitness struggles have continued into 2025, limiting his availability. Rudiger remains consistent but turns 33 in 2026, prompting discussions about succession planning at the heart of Xabi Alonso’s defence. Real Madrid have therefore been scouring Europe for top-tier defenders available at reasonable prices or nearing the end of their contracts, a strategy that initially made Guehi appealing.

However, Guehi’s financial demands reportedly exceeded those of any existing Madrid defender, and the club hierarchy, led by Florentino Perez, has no intention of breaking its internal pay balance for a non-Galactico-level signing. With Guehi off the table, Los Blancos are now turning their attention to other long-term targets, including Bayern Munich’s Dayot Upamecano, Liverpool’s Ibrahima Konate, and Arsenal’s William Saliba, all of whom have been tracked by Madrid scouts in recent months.

(C)Getty ImagesGuehi's spectacular Liverpool transfer collapse

Guehi’s decision to pursue high wages comes against the backdrop of his failed transfer to Liverpool earlier this year, a saga that dominated the final hours of the 2025 summer window. Liverpool had agreed a £35 million (€40m) fee with Crystal Palace, including a sell-on clause, and the player even underwent parts of his medical ahead of a deadline day move to Anfield. However, the transfer collapsed at the last moment after Palace failed to secure a replacement, reportedly prompting manager Oliver Glasner to threaten resignation if the sale went ahead.

Palace’s first-choice target, Brighton’s Igor Julio, chose to join West Ham instead, leaving the Eagles without adequate cover and forcing chairman Steve Parish to pull the plug despite the deal sheet already being submitted. Guehi, who was said to be “devastated” by the decision, returned to training with the Eagles the following week but made clear his intent to move on when his contract expires. The breakdown of that move not only frustrated Liverpool but also alerted several European giants, with Real Madrid, Bayern Munich, and Inter all contacting his representatives soon after.

For Liverpool, the failed transfer represented a rare misstep in an otherwise calculated window, which saw them sign Alexander Isak, Hugo Ekitike, Jeremie Frimpong and Florian Wirtz, among many others. The Reds have maintained contact with Guehi’s camp since then, with sources suggesting that he remains their “priority target” to eventually succeed Van Dijk.

What comes next?

With Real Madrid officially stepping away from the deal, the race for Guehi’s signature is now expected to intensify between Liverpool and Bayern Munich. Liverpool’s advantage lies in the player’s long-standing admiration for the club and his desire to remain in the Premier League, while Bayern are prepared to offer him a lucrative deal. Both clubs view Guehi as a leader capable of anchoring their defence for years to come.

For Crystal Palace, the priority is stability until the end of the season. The club remains resigned to losing their captain but are determined to keep him until his contract expires in 2026, believing his leadership and consistency are vital for their Premier League campaign.