"Ajax refuse to be put under pressure and have rejected the ultimatum," said the club on their website.

Spanish media reported on Saturday that Real Madrid had reached an agreement in principle with Ajax for the signature of the Dutch international midfielder.

And according to Ajax they had received an official offer of 24 millions euros (32.7 million dollars) for Sneijder but Madrid had also requested if the deal was to go ahead the player would have to be registered in Spain before August 24.

Ajax then increased the 23-year-old midfielder's transfer fee to 27 million euros but the Spanish champions responded by saying their offer was non negotiable and should be accepted or refused within three hours - an ultimatum Ajax refused to meet.

The Dutch club revealed that Real Madrid had therefore withdrawn their offer.

If the contract should eventually go through Sneijder will be Real's second Dutch recruit this season after confirmation of the arrival of midfielder Royston Drenthe from Feyenoord on a five-year deal.