Real Madrid have stepped up their pursuit of RB Leipzig winger Yan Diomande after submitting a €100 million offer for the highly-rated 19-year-old, only to see the Bundesliga club reject the bid as they hold out for a significantly higher fee.Yan Diomande reacts during the 2026 World Cup round of 32 match. (AFP)According to multiple reports, Madrid’s proposal was worth €90 million guaranteed plus another €10 million in add-ons. Leipzig, however, are understood to value Diomande closer to the €120-130 million mark and have so far shown little willingness to lower their demands.The rejection has not ended negotiations, with Madrid still believed to be in contact with Leipzig as they explore whether a compromise can be reached. The Spanish giants’ decision to table a nine-figure bid underlines the seriousness of their interest after Diomande’s breakthrough season in Germany.The teenager joined Leipzig from Leganés for around €20 million and enjoyed an outstanding first Bundesliga campaign, scoring 12 goals and providing nine assists in 33 league appearances. Across all competitions, he finished with 13 goals and 10 assists from 36 matches and was named the Bundesliga Rookie of the Season.PSG provide major competition for Real MadridMadrid are not alone in the race. Paris Saint-Germain have been working on a deal for Diomande and are reported to have already reached an understanding with the winger over personal terms on a contract running until 2031.Earlier reports suggested PSG had emerged as Diomande’s preferred destination, although Madrid’s entry into negotiations has complicated the situation. Spanish reports have subsequently claimed that the youngster is also attracted by the prospect of moving to the Santiago Bernabéu, leaving his final choice uncertain while the clubs negotiate with Leipzig.Liverpool have also explored a move and previously had a substantial offer rejected, but Madrid and PSG currently appear to be the two strongest contenders.Leipzig remain in a powerful negotiating position. Diomande is contracted until June 2030 and does not have a release clause, allowing the German club to dictate the terms of any potential sale. Sporting director Marcel Schäfer had previously insisted that Diomande would remain at Leipzig next season, although the player himself has indicated that he expects to move and has left negotiations in the hands of his representatives.Also Read: Andrea Pirlo accepts Italy job as Azzurri entrust 2006 World Cup winner with long-term mission to revive national teamMadrid’s interest comes as the club look to strengthen their options in the wide attacking positions. Diomande, who can operate from either flank, has emerged as one of Europe’s most sought-after young forwards following his rapid rise over the past year.The transfer could also deliver a sizeable windfall to Leganés. The Spanish club reportedly retained a 10 per cent share of the profit from Diomande’s future sale, meaning a deal around Leipzig’s €120 million valuation could earn them close to €10 million.For now, the major question is whether Real Madrid are prepared to return with an improved offer. Their opening €100 million proposal has already demonstrated their intent, but Leipzig’s valuation means another significant financial push may be required before a deal can move closer to completion.