White Hart Lane offer was rejected by Bernabeu star.
Tottenham Hotspur have been rebuffed in their efforts to sign Real Madrid midfielder Lassana Diarra, who looks set to join AC Milan on-loan.
The 26-year-old has been a summer target of Spurs boss Harry Redknapp after they worked together at Portsmouth.
The France international has now been deemed surplus to requirements at the Bernabeu and wants a move to secure first-team football.
Diarra’s wage demands have been holding up a potential move to White Hart Lane and Milan have now entered the race.
The Serie A champions want him to act as cover for Mathieu Flamini, who suffered a serious knee injury which will rule him out of action for around five months.
Spurs have not let the news affect their transfer plans and are expected to sign Scott Parker for £6million today from West Ham United.
The 30-year-old handed in a transfer request to push the move through in order to enhance his England chances and play at the highest level.
“I hope the fans will understand and respect my decision and I wish the club every success in their fight for promotion this season,” Parker said.
“I have had a fantastic four years at West Ham United and will never forget all the support I have had from the fans and everyone associated with the club.
“The manager and board have tried hard to convince me to stay but at this stage in my career I need to be playing in the Premier League, especially now I am involved with England.”