River Plate president Rodolfo D'Onofrio has denied reports in Spain that a deal has been reached to sell midfielder Exequiel Palacios to Real Madrid.
Diario AS said Madrid had agreed terms to sign Palacios in the winter window and a deal would be completed as early as next week.
"He has not been sold, but there is an interest from Real Madrid in Palacios," D'Onofrio told America TV.
"The Real Madrid sporting director spoke to [River Plate sporting director Enzo] Francescoli regarding their interest on the player, and we will speak further along. But he hasn't been sold."
Marca reported this week that Madrid had seen off opposition from Paris Saint-Germain and Manchester City to land Palacios and would pay €20 million for the 20-year-old.
Palacios made his Argentina debut in September and has made 25 league appearances since his River Plate debut in 2016-17.
He could face Madrid in the FIFA Club World Cup next month if River Plate win the Copa Libertadores.