Real Madrid have dealt Arsenal a blow in the race to sign Porto striker Andre Silva, according to the Daily Star.
The Gunners had hoped to finally secure the signing of a top-class striker by bringing in the highly rated 21-year-old for £20 million.
But Porto believe Madrid hold a genuine interest in their latest prodigy and instead plan to hold out until the summer transfer window - when the Champions League holders' transfer ban ends - in the hope of bringing in more cash.