The Vinicius Junior situation at Real Madrid needs to be resolved soon — and proof of this is the meeting scheduled for this week between the club and the player's agents to discuss a contract renewal. His current deal expires in June 2027, and The Athletic has revealed that Arsenal are exploring the possibility of a move for the Brazilian if he does not re-sign.

Vinicius Jr is open to lowering his demands to Madrid, having previously asked for a package approaching but not quite reaching €30million a year, comprising a base salary, performance-related bonuses, and — in what would be an unprecedented move at Madrid — a renewal bonus. This renewal bonus remains the main point of contention between the parties. Madrid have shown no willingness to accept this condition, out of fear of creating a knock-on effect among the squad.

Key figures at the club are in favour of a sale this month if no agreement is reached on an extension, in order to prevent Vinicius Jr potentially leaving as a free agent next summer. The 26-year-old returned to pre-season training on Monday under new head coach Jose Mourinho, who has been in contact with him and likes his profile. However, the decision over his extension or sale will rest with the club, with president Florentino Perez having the final say.

Diomande Deal Nearing Completion

Real Madrid and RB Leipzig are still to reach an agreement for Yan Diomande, as confirmed by Leipzig's sporting director Marcel Schaefer. The 19-year-old Ivory Coast winger was not part of the German side's pre-season friendly on Saturday, with Leipzig saying he was unwell. More talks are scheduled between the two clubs on Tuesday, with the hope of completing a deal before the weekend. There is a general expectation that a deal will be sealed this week.

Rodri Pursuit Ongoing

Work continues on the signing of Rodri from Manchester City. Personal terms with Spain's World Cup winner are not an issue, but talks with City over a fee have not yet been completed. The midfielder has only one year left on his contract at the Etihad.

Academy Products Move On

Carlos Espi's arrival was announced on Thursday, with Madrid and Levante agreeing a deal worth around €25million for the 21-year-old Spanish striker. That move was finalised following an agreement for the sale of Gonzalo Garcia to Fulham for around €40million, a transfer now confirmed. Madrid will also retain 30 per cent of any future sale, a right of first refusal, and exclusive buy-back clauses from the second season onwards.

Cesar Palacios, another former Madrid youth-teamer, has also joined Fulham in a similarly structured deal worth around €10million. The 21-year-old attacking midfielder was a key target for new Fulham coach Alvaro Arbeloa, who worked with him at academy and senior levels at Madrid.

Two other Madrid academy graduates have also moved on. Goalkeeper Fran Gonzalez, 21, joined Sevilla for €3million, and defender Victor Valdepenas, 19, signed for Fiorentina for €8m. Madrid inserted 50 per cent sell-on clauses in both cases.

Mourinho Wants a Centre-Back

Mourinho is still keen to sign a centre-back, but is aware that a first-team player would have to leave for this to happen, and that any deal must be considered financially viable. Madrid and Mourinho are open to the departures of Raul Asencio and Eduardo Camavinga, both 23. However, neither player has shown a sign of wanting to seek a new club. Spanish centre-back Asencio suffered a muscle injury last week that will keep him out of action for at least a month, which complicates any potential move.

Mastantuono and Endrick Futures

Franco Mastantuono is expected to leave on loan. The 18-year-old Argentine, signed in 2025 from River Plate for €63.2million, has failed to impress during pre-season following a disappointing debut campaign. His preference was to return to River, but Madrid are not considering that option and want him to stay in Europe, with a preference for Spain. Fiorentina have shown concrete interest, though there is acknowledgement it will be an uphill struggle with plenty of competition.

There have been rumours of another possible departure for Endrick following Espi's signing. However, sources with knowledge of the situation say the Brazilian striker, who was loaned to Lyon in last season's winter window, wants to stay, and Mourinho has been impressed by his efforts.