Brahim Diaz turned down a move to Getafe because he believes he will be given a chance to impress at Real Madrid.
Diaz signed a six-and-a-half-year contract at Madrid when he joined for an initial £15 million ($19m) from Manchester City last January, but he has hardly featured since.
The 20-year-old has only made five appearances this season, though he did recently score in the 3-1 Copa del Rey win over Unionistas on January 22.
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Getafe had offered him a route out of Santiago Bernabeu on loan, but their manager Jose Bordalas says they were turned down.