According to Sky Italia insider GIanluca Di Marzio, Rafael Benitez has now reneged on a deal with West Ham - because he believes he could join Real Madrid.
Benitez, 56, is currently managing in Italy with Napoli, but with his contract set to expire this summer, it doesn't seem that his future lies with the Serie A club.
The former Liverpool boss, who won the Champions League whilst in charge of the Reds, could now be on the move this summer, with a Premier League return potentially in the Spaniard's mind.
Di Marzio believes that, with Sam Allardyce also out of contract at West Ham, the Hammers had targeted an ambitious move for Benitez - and that he had agreed to make the move to Upton Park at the end of the season.
However, the report now states that Benitez contacted West Ham this morning to tell them that he had to end that agreement as a move to Real Madrid becomes a possibility.
Real were beaten by Juventus in the Champions League semi-finals, whilst also lost out to Barcelona in the La Liga title race, meaning the future of manager Carlo Ancelotti is up in the air.
Di Marzio suggests that Real president Florentino Perez is now seriously considering a move to bring Benitez to the Spanish capital - leaving West Ham to consider other targets as they prepare for life after Allardyce.