The Belgian has his heart set on a transfer switch to Real and asked Chelsea after the World Cup to sanction the sale as he wants to return to Madrid to be closer to his family and experience a new challenge after four years at Stamford Bridge.
The Daily Express claim Chelsea have weighed up their options, and although the club were once open to the sale, Courtois will now not be departing.
Chelsea are not happy with Real’s offer, thought to be around £31million, considering Liverpool forked out £67m on Roma goalkeeper Alisson last month.
The Blues were also unable to secure a top class replacement for Courtois, having failed in an attempt to sign Alisson themselves.
Approaches for stoppers Kevin Trapp and Jan Oblak were turned down by their respective clubs, but the latest set-back was Everton’s refusal to consider an offer for England keeper Jordan Pickford.
The failed Pickford move means Chelsea believe they have exhausted their options in terms of a replacement for Courtois and the club will inform the stopper of their decision, with the 26-year-old now set to see out the final year of his contract.
Courtois is yet to link up with Chelsea for pre-season after being given extra time off for his World Cup exploits.
Chelsea kick off their Premier League season against Huddersfield, but the FA Cup holders will first take on Manchester City in the Community Shield on Sunday.
The 25-year-old Ivory Coast international bagged nine goals and three assists last term, despite missing five weeks of the season injured.
That prompted Palace to offer Zaha a new deal worth £125,000-a-week — although he only signed one for £100,000-a-week 15 months ago – but Zaha has rejected it in a bid to force a move.
He has already snubbed interest from Everton as he is reluctant to move north again, after a failed stint with Manchester United.
Everton turned to Watford wideman Richarlison instead, and now Zaha is up for a move across London, where he is settled.
He could even consider lodging an official transfer request after Palace told him they would only consider an irresistibly huge offer.
West Brom have rejected a £16m offer from Burnley for Jay Rodriguez, according to the Guardian.
The Baggies have already turned down a joint £25m offer for Rodriguez and Craig Dawson, saying they want at least £20m for each player.
The Championship side, relegated from the Premier League last season, want to keep hold of Rodriguez as they seek an instant return.