Real Madrid Transfer News Roundup: Los Blancos set Kylian Mbappe price limit; Chelsea preparing €130 million Federico Valverde bid, and more - July 31, 2023

Real Madrid are working to improve their squad this season after finishing second in the league last season. Carlo Ancelotti's team remain linked with multiple names ahead of the new campaign.

Meanwhile, Los Blancos have set a price limit for their pursuit of Paris Saint-Germain striker Kylian Mbappe. Elsewhere, Chelsea are ready to test the La Liga giants' resolve by offering €130 million for midfielder Federico Valverde.

On that note, here's a look at the key Real Madrid transfer stories as on July 31, 2023:

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Real Madrid set Kylian Mbappe price limit

Kylian Mbappe is wanted at the Santiago Bernabeu.

Real Madrid will not pay more than £198 million to secure the signature of Kylian Mbappe, according to Marca.

The French forward is expected to leave Paris Saint-Germain this summer, with the club eager to avoid losing him for free next year. While Los Blancos were planning to sign him on a Bosman move next summer, the rising interest in the player's services has forced the club into action.

The La Liga giants are ready to move for the player this summer but have set a budget for their pursuit. Mbappe is among the finest players in the world, and Real Madrid are his long-term admirers. However, Los Blancos are reluctant to go overboard for a player who contract expires in a year.

There's considerable interest in the 24-year-old from the Premier League, with Liverpool and Chelsea among the clubs reportedly eyeing him with interest.

However, the Frenchman has his heart set on a move to the Santiago Bernabeu. The La Liga giants will be hoping that if they fail to sign Mbappe this year, he will arrive for free next summer.

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Chelsea preparing €130 million Federico Valverde bid

Federico Valverde has admirers at Stamford Bridge.

Chelsea are preparing to submit a colossal offer for Federico Valverde this summer, according to Nacional.

The Blues are eager to reinforce their midfield this year and have set their sights on Moises Caicedo. However, prising him away from Brighton & Hove Albion is proving to be a frustrating affair.

The situation has forced the London giants to look at alternate target, and Valverde has emerged on their radar. The Uruguayan has been a revelation for Real Madrid recently, but his future remains undecided following Jude Bellingham's arrival. Chelsea are hoping to make the most of the situation and prise him away.

However, Los Blancos consider the 24-year-old an integral part of their plans and are reluctant to let him go. The La Liga giants have already rejected a €80 million offer this summer for Valverde from Liverpool.

Saudi Arabian sides Al-Hilal and Al-Ahli have also failed with bids of €100 million. However, the Blues are hoping to tempt Real Madrid with an offer of €130 million.

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Carlo Ancelotti not too bothered with Barcelona defeat

Carlo Ancelotti is not too disheartened by the loss to Barcelona in pre-season. Los Blancos were beaten 3-0 by their bitter rivals at the AT&T Stadium over the weekend.

Aftwr the game, as cited by Managing Madrid, Ancelotti said that the result is the only negative from the game.

"It was a good game with and without the ball and we created a lot of chances, but the negative is the result. It’s quite strange to hit the post five times in one game. I don’t think that’s every happened to me, but I’d rather it happened in pre-season. It seemed there was a wall in front of their goal. The result isn’t the important thing, but we don’t like to lose," said Ancelotti.

Vinícius Junior missed a penalty, prompting enquiries about the permanent penalty taker for Real Madrid following Karim Benzema's departure.

However, the Italian manager said that a decision on that matter hasn't been taken yet.

"Vinícius was very dangerous and was centimetres from scoring. He was a positive star of the game, even without scoring. Modrić wasn’t on the pitch, and he usually took penalties if Benzema wasn’t there. It could be Modrić, it could be Vinícius, it could be Rodrygo. We’re looking at that," said Ancelotti.

Ancelotti also refused to indulge on his decision not to start Toni Kroos and Luka Modric against the Catalans.

"I wanted to see the youngsters in a demanding game like this, and I think the youngsters did well. I already know what Kroos and Modrić can do. In the next game, I’ll give more minutes to others. That’s a normal approach to pre-season," said Ancelotti.

Los Blancos next face Juventus at the Camping World Stadium on Wednesday (August 2).