Paris Saint-Germain have formally withdrawn from the race to sign RB Leipzig forward Yan Diomande, clearing the path for Real Madrid, who are now increasingly confident of securing the 19-year-old Ivory Coast international.

PSG confirmed their exit in a statement issued to Sky Sports in Germany. "PSG has this evening formally withdrawn its interest in, and bids for, Yan Diomande," the club said. "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."

Real Madrid push hard for a deal

Real Madrid have already seen an £85.4m (€100m) bid knocked back by Leipzig, with the Bundesliga club holding out for a considerably higher fee. Despite that, Jose Mourinho's side are understood to be pushing hard to get a deal over the line and have already agreed personal terms with Diomande.

Diomande had earlier in the summer indicated a preference for PSG and had even agreed a contract with the Ligue 1 champions running until 2031. With that avenue now closed, Real Madrid's position has strengthened considerably.

Liverpool have also registered interest in the Ivorian but are unwilling to exceed the £85m mark. Arsenal and Manchester City remain keen as well, though Real Madrid appear to hold the advantage at this stage.

Arsenal explore Vinicius Junior possibility

In a separate development, Arsenal are looking into a potential move for Real Madrid winger Vinicius Junior. No club-to-club contact has taken place yet, but Arsenal's interest is genuine. Vinicius Junior, 26, has entered the final year of his contract, and if Real Madrid cannot agree an extension, they may prefer to sell rather than lose him for free next summer. Diomande, Julian Alvarez, and Bradley Barcola are also among the forward options Arsenal are exploring.

Bayern confident Olise stays

Bayern Munich sporting director Christoph Freund has dismissed speculation linking Michael Olise with a move to Real Madrid. "This is not a topic for us at all," Freund told reporters on Saturday. "We are delighted that Michael Olise has returned from his holiday. He will continue to play an important role at Bayern Munich this season, just like last year."

From Leganés to the biggest stage

Diomande's rise has been one of football's most remarkable stories of the past 12 months. Just a year ago, his entire senior record amounted to a handful of starts for Leganés at the tail end of a relegation season in LaLiga. He scored in two of those six appearances — against Espanyol and Valladolid — before RB Leipzig paid €20m to bring him to the Bundesliga.

Since arriving in Germany, Diomande has been nothing short of a revelation. Explosive, unpredictable, and extraordinarily difficult to contain, he possesses the natural gifts no coach can instil — and has shown the willingness to absorb the ones they can. The very biggest clubs in Europe now want him. The rest can only watch.