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Ancelotti: No transfer activity at Madrid

Ancelotti has declared himself happy with the current squad at his disposal, quashing speculation linking the likes of Angel di Maria with January moves away from Madrid.

A cluster of Premier League clubs – including champions Manchester United, leaders Arsenal and Chelsea – are rumoured to be monitoring the winger's potential availability, while midfielder Xabi Alonso has been tipped to make a return to Liverpool.

However, Ancelotti has ruled out any transfer activity at the Bernabeu over the coming weeks.

"No players are leaving and we aren't going to sign anyone. The market is closed for us," Ancelotti is quoted as saying by Marca.

Alonso is out of contract at the end of the season, but Ancelotti has again stated his desire to keep hold of the 32-year-old and is confident that progress is being made in negotiations over a new deal.

He added: "I think we'll find a solution to Xabi Alonso's situation and both club and player will reach an agreement."