Real Madrid have reportedly rejected a bid from West Ham United for 22-year-old striker Joselu.
The former Spanish Under-21 international has only featured on two occasions for Los Blancos' first team, scoring on both occasions.
Real boss Jose Mourinho is said to be willing to allow Joselu to leave the club on loan or as a part of a transfer which includes a buy-back clause.
According to The Mirror, the Hammers lodged an offer which included a buy-back option of £1.5m for next summer and £2m for 2013, but it was rejected as the upfront fee was too far short of the £7m asking price.
Arsenal, Southampton and Reading are all said to be interested in Joselu's signature.
