Santos vice-president Odilio Rodrigues has confirmed that the club have already rejected an offer from Barcelona for Neymar.
Rodrigues has revealed that talks will continue with Barca, but he also admitted that they are expecting to hold discussions with Real Madrid, too.
"There is no agreement for Neymar, there are talks, I met [Barcelona's president Sandro] Rosell and [Barcelona's sporting director] Raul Sanllehi last week," he told Radio A Xarxa.
"We had a very frank conversation. Talks need to continue because the offer was not good enough."
He confirmed that Santos are expecting Real to lodge a bid shortly, adding: "We know Real Madrid will make an offer too."
Rodrigues also insisted that the player will make the final choice, adding: "Neymar will choose the team he wants, it's Neymar's opinion that is important."