River Plate president Rodolfo D'Onofrio has refuted claims that there is a deal in place for Real Madrid to sign midfielder Exequiel Palacios.

Spanish outlet Marca reported earlier this week that Palacios, also touted as a target for Paris Saint-Germain and Manchester City, would become Los Blancos' first January signing.

The 20-year-old is said to have put pen to paper on a contract that runs until 2024, with an announcement to be made following the second leg of the Copa Libertadores final between River Plate and Boca Juniors next week.

D'Onofrio has denied that an agreement has been reached, however, telling America TV: "He has not been sold, but there is an interest from Real Madrid in Palacios.

"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."

Real allegedly handed over close to £18m for Palacios, who made his debut for Argentina in September.