That is according to Spanish newspaper AS, who claim the La Liga giants are not interested in Reus as they're already well-stocked with attacking players.
Los Blancos were understood to have taken out the option to buy Reus a year ago, but are no longer interested in tabling a deal.
The report suggests Real's current options of Cristiano Ronaldo, James Rodrigues, Gareth Bale, Isco and Karim Benzema means the club will only look to strengthen in other areas.
Real Madrid will not make a summer move for Marco Reus
The Premier League is now the likely destination for Reus, with Arsenal, Chelsea, Liverpool and Manchester United all credited with an interest in the 25-year-old.
The Germany international only signed a new four-year deal in February, but is believed to be on his way out in the summer after boss Jurgen Klopp revealed his intention to leave the Bundesliga club.
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