Real Madrid's new contract talks with Pablo Sarabia have stalled.

The young midfielder is regarded as the jewel of the Castilla, but Real risk losing him this summer with negotiations now stumbling.

Real youth chief Ramon Martinez is desperate to avoid another 'Juan Mata case', but they could see the 18 year-old skip out on the club this summer if talks continue to falter.

Arsenal, Barcelona and Inter Milan are monitoring developments.