River Plate have told Real Madrid they're ready to negotiate with rival clubs over the sale of Exequiel Palacios.

The young midfielder has been the subject of major interest from Real since the end of last season and was expected to sign for the European champions this month.

However, with Real now dithering over a deal, a frustrated River board are prepared to axe their informal arrangement and sell to a rival.

Sportmediaset says River have warned Real they need to settle on a fee for Palacios this week or they will start listening to other offers.

Waiting to pounce are Inter Milan, which have been speaking with the midfielder's minders for several months.