Sources close to Real say key negotiators Jose Angel and Juni Calafat have been scouting Diomande for about five years, but were not reactive to Diomande’s World Cup performances.
PSG had been frontrunners for the Ivorian until Real registered their interest, and they confirmed their withdrawal from the race on Sunday.
“The asking transfer fee and salary demands were completely disproportionate and distortive – and PSG will not break its principles of rational financial management and squad balance,” the French club said.
“As a two-time consecutive Champions League winner and the most successful club in recent years, PSG will also not engage in the inflationary and manipulative games of certain player agents – and will instead calmly and confidently continue its transfer planning.”
Leipzig have tried hard to keep the forward in Germany but regard the interest in Diomande as extraordinary, so have found it difficult to reject the interest – and potential record sale price – from Europe’s elite clubs.
Diomande was the Bundesliga’s young player of the season for 2025-26, having scored 12 goals and registered eight assists last term.
He moved from his native Ivory Coast to an academy in the United States in 2025 before joining Spanish side Leganes.