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PSG step back from Michael Olise chase as Bayern Munich and France star targets Real Madrid move
Priya Nambiar | July 17, 2026 8:49 PM CST

Paris Saint-Germain have reportedly decided not to pursue Bayern Munich’s standout performer Michael Olise, with the French giants unwilling to engage in a bidding contest or meet the staggering €200 million asking price. This decision has left Real Madrid in a favourable position to sign the France international, who is said to be eager to complete a high-profile transfer to the Santiago Bernabeu following a remarkable season in Germany.

PSG end pursuit of Olise

As reported by Foot01, the Parisian club have chosen to withdraw from the race to sign Olise, effectively clearing the path for Real Madrid to move forward with their interest in the Bayern winger. PSG’s leadership, including sporting director Luis Campos and president Nasser Al-Khelaifi, are reportedly reluctant to meet Bayern’s €200 million valuation and are instead focusing on a more sustainable recruitment policy.

Real Madrid president Florentino Perez is understood to view the London-born forward as a potential “Galactico” who could further unleash Kylian Mbappe’s full capabilities. According to L’Equipe, Olise has already spoken with his France teammates Mbappe and Aurelien Tchouameni to learn more about life in Madrid. After an outstanding campaign with 22 goals and 31 assists, the young Frenchman is reportedly ready to embrace the challenge of Spanish football.

PSG’s new recruitment vision

The shift in PSG’s transfer approach reflects a conscious move away from the extravagant spending that marked the Neymar and Lionel Messi years. Club insiders have reportedly concluded that “it is better to search for the next Olise rather than Olise himself,” indicating a preference for investing in emerging talents before their market values soar.

Officials at the club are cautious about getting drawn into another high-cost transfer saga that could strain their compliance with Financial Fair Play regulations and disrupt the club’s wage balance. With Olise expected to demand a salary exceeding €20 million per year, PSG are now expected to turn their attention towards rising Ligue 1 stars. Domestic talents such as Maghnes Akliouche and Oumar Diomande are said to be on head coach Luis Enrique’s radar.

Real Madrid’s financial might

Real Madrid, on the other hand, are in a strong financial position to fund what could become one of football’s most expensive transfers. The club recently recorded a record-breaking €1.161 billion in revenue and have added to their financial strength through profitable summer sales.

Nevertheless, Los Blancos may still need to make adjustments to balance their finances if they proceed with the Olise deal. Questions linger around the future of Vinicius Junior, who is entering the final year of his contract. According to L’Equipe, should no renewal be agreed upon, the Brazilian winger could be sold to help finance Olise’s potential arrival and maintain financial equilibrium.

Meanwhile, Olise is reportedly “particularly determined” to push through a move to Spain. Although Bayern Munich initially resisted any discussion of a sale, the player’s firm stance could prompt a shift in their position as negotiations progress.

Long negotiations ahead

With PSG stepping away from the pursuit, Real Madrid find themselves in a stronger position to formalise their interest. However, Bayern Munich are not expected to release one of their most valuable assets easily, suggesting that discussions could be drawn out over the coming weeks.

For PSG, the attention now turns towards discovering the next wave of emerging stars rather than entering another inflated transfer battle. Meanwhile, Real Madrid will look to leverage their financial resources to secure one of the most coveted players of the upcoming transfer window.


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