Real Madrid have been unable to reach an agreement to sign Brazilian World Cup star Ronaldo from Inter Milan and have ended negotiations with the Italian club.

"Real Madrid would like to make it clear that there are irreconcilable differences with Inter Milan in the negotiations over Ronaldo," said a statement on Real's website.

"In the frank and cordial conversations held this morning the impossibility of reaching a satisfactory agreement became clear and as a result both clubs have agreed to end the negotiations."

The Spanish club's sporting director Jorge Valdano had been in talks with Inter director-general Massimo Moratti, after initial discussions were held between Real president Florentino Perez and Moratti on Thursday.

Nine-times European champions Real have broken the world transfer record twice in the last two years to bring in Luis Figo and Zinedine Zidane.

Earlier Valdano said another huge outlay for Ronaldo was out of the question.

He confirmed that Real's idea was to sign Ronaldo in a players-plus-cash deal, with Fernando Morientes, Pedro Munitis, Santiago Solari and Flavio Conceicao all on the list of players who could leave.

Real are thought to want to pay between �8m and �15m plus players, but Inter had initially sought �65m.

Ronaldo's agent said on Thursday that the Brazilian would not play for Inter again even if the club refuse to let him join Real.

Reinaldo Pitta, the striker's representative in Brazil, said the player had already agreed terms with the Spanish club.

Moratti, however, said earlier in the week that Ronaldo would remain at the club for at least one more season.