Carlo Ancelotti has told president Florentino Perez that Gareth Bale does not feature in his plans for the season, according to The Telegraph.
The report claims that Ancelotti made his feelings on the transfer known during a meeting with Perez at the end of the club's U.S tour.
In recent days, the Spanish press, in particular pro-Madrid newspaper Marca, have been citing the unrest in the capital surrounding Madrid fans who don't believe Bale should overtake Ronaldo as the most expensive player ever.
The fact that Real have won six of their seven pre-season friendlies, has appeased certain quarters, who were calling for Ancelotti to spend even more money on improving the squad.
Ronaldo himself, by way of refusing to publicly endorse the potential move of Bale to Madrid last week, is also thought to have been amongst the factors that have led to a possible 'cooling of interest' from Los Blancos in their pursuit of the Tottenham star.
The revelation, if true, could reportedly pave the way for a spike in interest from Manchester United, who have yet to make a marquee signing under David Moyes.
Moyes, who has already expressed his admiration of Bale's talents, is keen to add to his squad before the transfer window closes, and the Red Devils may well launch a bid of their own if Real back-off completely.