Inter Milan president Massimo Moratti has declared Douglas Maicon is staying.
Inter's 30m valuation of the right-back was deemed as a little too excessive by Real Madrid for a player who is already 29.
"If they had wanted him that much then they should have offered more," Moratti told Corriere dello Sport.
"They didn't understand how good a player he is. He will subsequently stay here with us and we are very happy about that.
"The player though is very tied to Inter and it would have been sad to sell him."
The news that Maicon's move to Real Madrid is off will delight new Inter boss Rafael Benitez who was understood to be against the sale.
"Maicon is a formidable player," continued Moratti. "He's the best full-back in the world and it would have only been normal for Benitez to be unhappy should the Brazilian have been sold.
"Maicon is a boy with great heart and great class, somebody who can take the side by the hand," the oil baron continued.
"He is a player who didn't deserve his future to be placed on the scales like that, especially for such a long time as we didn't have the need to sell him."