Real Madrid president Florentino Perez has claimed that Arsene Wenger turned down the chance to take charge at the Santiago Bernabeu.
Manuel Pellegrini was eventually chosen to succeed Juande Ramos in the Real hotseat, after Wenger reportedly said no to Perez.
"From the beginning we have worked on two possibilities - Wenger and Pellegrini," Perez told L'Equipe.
"We have always been attracted by the Frenchman and we talked to him several times.
"He didn't come because he feels very responsible about what has happened and what will happen at Arsenal. He didn't want to abandon the club that he has given such a lot to."
Meanwhile, Liverpool's parent company Kop Football Holdings Ltd has reported a loss of 42.6million for the year ending July 2008.
The company, owned by Tom Hicks and George Gillett, recorded a record turnover of 164million, with the football club itself responsible for 159.1million on its own - including a profit of just over 10million.
AC Milan supremo Silvio Berlusconi has dropped a hint that his club could enter the bidding to try and prise Cristiano Ronaldo away from Manchester United, amid continuing talk of another approach from Real Madrid.
Men's tennis world number one Rafael Nadal has been forced to pull out of next week's Queen's Club tournament due to ongoing knee problems.
The Spaniard, who recently lost for the first time ever at the French Open, is focused on being in peak condition for the defence of his Wimbledon crown.
Nadal admitted: "I've been having problems in the past months with my knees. I need to recover and get ready for Wimbledon.
"I need to work with my team to recover my physical condition to be at my top form and get ready to play at Wimbledon."
The future of the British Grand Prix at Donington Park appears to have been secured after the operators of the track reached an out of court with the owners of the Leicestershire venue.
The race is scheduled to be switched from Silverstone to Donington from 2010 onwards, but the move was thrown into doubt after owners, Wheatcroft & Son Limited, had threatened to cancel the lease of Donington Ventures Leisure Ltd over unpaid rent.
However, the two parties have now reached settlement leading to hopes that the ten-year agreement to race at Donington will now be honoured.
Leigh Halfpenny is among nine players who will all make their first starts for British & Irish Lions on the tour to South Africa after being named in the side to play Cheetahs.
Wales wing Halfpenny missed the first week of the tour after remaining with club side Cardiff Blues to aid his recovery from a thigh injury.
The 22-year-old will be making his Lions appearance - alongside fellow debutant Luke Fitzgerald of Ireland - in Saturday's third warm-up match in Bloemfontein.
Elsewhere, lock Donncha O'Callaghan, hooker Ross Ford, prop Euan Murray, flanker Stephen Ferris, number eight Andy Powell and half-backs Harry Ellis and James Hook will also start their first game of the tour.