Macri was negotiating with Real officials in Madrid over the weekend for the transfer of his 20 year-old player but apparently his asking price of 23 million euros was too high even for the wealthy Spanish giants.

Gago, one of the stars of Argentina's team that won the Under 20 World Cup last year, has drawn comparisons with the Argentine and Real Madrid icon Fernando Redondo for his abundant talent as a playmaker and also his long, lank hairstyle.

He is high on the list of players that Real coach Fabio Capello wants to sign in order to reinforce his squad in the New Year.

"We need Gago but, when he's signed, I'll talk more about him," said Capello at a press conference on Saturday.

Spanish media speculated that Macri's tactic of putting Gago in the shop window for Real's rivals was just a way of trying to get the nine-time European champions to increase their offer from a reported ceiling of 18 million euros.