Per Catalan outlet Sport (h/t Sport Witness), Los Blancos president Florentino Perez has no interest in a head-to-head with Spurs chairman Daniel Levy, and the presence of both Marco Asensio and Isco means the Spanish champions have no real need for Alli.
Sport Witness noted the former MK Dons man was on the Sport cover on Monday.
The 21-year-old midfielder has become one of the top players in the Premier League over the last two seasons, and pundits are already debating whether he should be considered a world-class player. Per Goal, England manager Gareth Southgate gave his opinion:
As an advanced midfielder with a remarkable scoring touch, Alli has been vital for Spurs ever since making his debut in August 2015. Along with striker Harry Kane, he represents the team's future―providing Levy can keep the duo in north London.
The 2017-18 season hasn't been a great one so far for Alli, as noted by Matt Law of the Daily Telegraph:
His current form won't hamper his transfer value too much, however―in fact, some clubs could take it as a sign he's ready to leave Spurs.
Real are well-stocked in the midfield areas, with the aforementioned Isco and Asensio just two of their many options. Mateo Kovacic should return to form once he's healthy, and in Dani Ceballos, the club brought in a highly regarded talent last summer. Marcos Llorente and Federico Valverde are also high-upside players.
Los Blancos have a reputation for signing star players, but the club have shifted towards younger targets in recent years, chasing players they can develop or loan out. Asensio is a prime example and that investment is already paying off in a big way.
Alli still has plenty of room to grow, but he would cost a huge transfer fee to bring to Spain. With so much midfield talent already at the Estadio Santiago Bernabeu, Perez is more likely to invest in other areas.
Levy is known as one of the toughest negotiators in football―either of the La Liga giants would have a hard time prying Alli out of north London right now.