The Spanish goalkeeper has been selected as the player that must make way for Keylor Navas.
The 32-yar-old started 36 of the 38 league games for the Spanish giants last term, but has been forced out of the club to make way for Navas.
Many thought Casillas would be the one leaving the Bernabéu this summer following his poor form in recent times. Jose Mourinho dropped the Spanish captain during his reign at Madrid, with new manager Carlo Ancelotti also sticking with Lopez for the majority of games.
Arsenal then reportedly expressed interest in Casillas, supposedly offering him a lucrative five-year deal to move to the Emirates.
But it seems as if 33-year-old Casillas will be staying with the club he has been with since a teenager, with Madrid looking for the best way to offload Lopez.
The European Champions are considering paying out the entirety of Lopez’s contract to ensure a painless departure from the club, and will not present Navas to the media until he has officially left the club.
Monaco, Napoli and even Chelsea have been linked with signing Lopez, who became popular under Mourinho at Madrid. The Chelsea interest though is thought to be brief, with no possibility of it happening unless Petr Cech was sold this summer.
But Mourinho in the last few days has expressed his desire to keep Cech, as he looks forward to a goalkeeping battle between him and Thibaut Courtois.
Lopez will no doubt be snapped up in a hurry, he is still a quality, reliable keeper. But his time at Madrid now looks to be at an end.