Atletico Madrid claim they turned down the opportunity to sign Arsenal misfit Jose Antonio Reyes.
Reyes appears set to return to The Gunners this summer after failing to impress while on a season-long loan at Real Madrid.
The former Sevilla star has featured 25 times for Real but has scored only three times and the player is now facing an uncertain future, with a return to Arsenal unlikely to suit either party.
Reyes's next port of call will not be Atletico, despite Real's city rivals claiming they were offered the player.
The Spanish side's sporting director Miguel Gil Marin is quoted by the Sun: "We've been offered Reyes but at this moment we don't want him.
"The possibility of Reyes coming to Atletico doesn't exist."
Reyes has also been linked with a move to former club Sevilla and Marin believes Atletico are being used as a pawn.
"We're tired of Atletico being used by agents to promote their players. It doesn't make sense if they are in negotiations with Seville to use Atletico to try and get more money."
The future of Julio Baptista is inextricably linked to that of Reyes, after the pair exchanged clubs last summer.
Baptista has performed in only fits and starts while on loan at Emirates Stadium, and Wenger would appear reluctant to meet Real's £10million asking price should Reyes rejoin The Gunners.
"If I stay at Arsenal and Reyes stays at Real, then Real have to pay Arsenal £3million and the problem is over," Baptista is quoted in the Sun.
"If Reyes doesn't stay, it gets complicated. I've got three more years on my contract with Real and they'll be the ones who decide."