Real Madrid offer for Espanyol's Kiko Casilla 'undervalues the player'

Espanyol have told Real Madrid they must increase their €4 million offer for goalkeeper Kiko Casilla if they are to sign him.

With Iker Casillas having left for Porto on Saturday and Keylor Navas sidelined by injury, Real have only third choice Pacheco and Castilla youngster Ruben Yanez available to play in goal.

"I said a few days ago that I hadn't negotiated with Madrid," Espanyol president Joan Collet told his club's official website.

"They called me afterwards and we rejected a €4 million offer. There are no more updates. That figure undervalues the player, and our club.

"There has been no negotiation. I haven't sat down, nor will I do so based on those figures."

Casilla, a former youth team player at Real, has a €20 million buyout clause in his contract, but Spanish newspaper Marca reported that Espanyol were willing to lower that.

The 28-year-old started 37 league games for Espanyol last season, keeping 13 clean sheets, and is under contract until 2018.

Speculation that Casilla would be returning to the Bernabeu has been fuelled by Madrid's inability to reach an agreement with Manchester United over Spain international goalkeeper David De Gea.

Marca reported that United would only let De Gea, under contract for another year, move if defender Sergio Ramos and Costa Rica goalkeeper Keylor Navas were included in the deal.