Borussia Dortmund have confirmed that they have been unable to agree new terms with midfielder starlet Nuri Sahin.
Real Madrid and Barcelona are understood to be leading the chase for the Turkish international who has been one of Dortmund stars as they look set to seal the Bundesliga title this term.
Sahin is contracted to the club until 2013, but it is believed that he has an agreement that will enable him to leave the club at the end of the season for a set fee - which is reported to be just over £5million.
Dortmund chief executive Hans-Joachim Watzke has confirmed that despite talks no deal has been forthcoming.
"If Nuri Sahin has received an offer from Real Madrid or Barcelona, he has every right to speak to us about that," said Watzke.
"We would have loved to already extend his contract at our club, we have not been able achieve this however. We have been in talks, but there is no agreement on its way."
Dortmund, meanwhile, have confirmed that Sahin will miss the rest of the season due to a knee injury.
The 22-year-old injured his right knee during his side's 3-0 victory over Freiburg on Saturday.
A subsequent scan on Monday revealed the midfielder has damaged ligaments and is facing six weeks on the sidelines, meaning he will miss the final four games.
Dortmund club doctor Markus Braun told the club's official website: "He will not be able to compete this season again."
Dortmund are on course for their first Bundesliga trophy since 2002, sitting eight points clear of second-placed Bayer Leverkusen.
They can clinch the title on Saturday if they win at rock-bottom Borussia Monchengladbach and Leverkusen fail to defeat eighth-placed Hoffenheim.