La Liga
Exequiel Palacios was one of the names that circulated most in the offices of Real Madrid last summer. With the arrival of Xabi Alonso to the white bench, rumors indicated that the coach turned to his former pupil in Germany as an option to strengthen the midfield. However, nothing was ever finalized, and now Palacios has extended his contract with Bayer Leverkusen until 2030, reaffirming his commitment to staying where he feels comfortable.
Why didn't Palacios land at Real Madrid with Xabi Alonso?
As reported by DefensaCentral, as the squad for the 2025/26 season was being outlined, several media outlets suggested that Alonso had recommended Palacios's arrival at the Madrid club. However, that idea was not backed by a concrete offer or serious negotiations. Real Madrid was interested in reinforcing the midfield, but the board was pragmatic: only operations that fit within the budget limit were considered.
Furthermore, in the Madrid squad, there is already fierce competition in the midfield. Players of high level and various profiles make it cumbersome for any coach to include another offensive or balanced midfielder. This situation applies even to Alonso.
Palacios renews with Bayer Leverkusen despite his market value
On October 3, 2025, Bayer Leverkusen formally announced Palacios's contract extension until June 30, 2030. His previous contract expired in 2028. At 27 years old and with an estimated value of around 40 million euros, the Argentine midfielder offered an attractive profile for any top European club.
Leverkusen justified the renewal as a continuation of a "success story." Simon Rolfes, the club's sporting director, highlighted that Palacios has become a strategic pillar of the project. The Argentine, on his part, stated that he feels valued and eager to continue contributing to the team's growth, where he has earned the respect and affection of the fans.
Advantages and risks from the Madrid perspective
If Palacios had arrived under Xabi Alonso's sponsorship, he would have added muscle, deployment, and the ability to create play from a deeper role. However, entering a crowded midfield involved risks: constant rotations, limited minutes, and high demands. Even though he improved under Alonso's guidance at Leverkusen, Palacios would hardly have secured a regular starting position at Real Madrid.

Today, the white club continues its search for midfielders with a playmaker profile, a gap that Alonso has clearly identified. With the transition towards a more withdrawn role for Jude Bellingham, the intention is for the Englishman to contribute in containment and organization. However, it's not just about desire: Real Madrid meticulously examines the contractual and economic conditions of candidates, avoiding risky moves in the market.
Conclusion
Exequiel Palacios opted for stability and relevance at Bayer Leverkusen instead of facing the competitive jungle of Real Madrid. Some may view this decision as conservative, while others see it as prudent. Nonetheless, his renewal reinforces the message that it's not always necessary to go to the most media-covered giant to keep growing.
While the white club continues its quest for balance in the midfield, Palacios's figure will keep fueling discussions about what could have been but wasn't. Ultimately, Exequiel Palacios remains a significant name in the European scene, but his saga with Real Madrid remained in rumors and on paper, while he shines brightly at Leverkusen.
This news is an automatic translation. You can read the original news, El mediocentro que Xabi Alonso quería para el Real Madrid se escapa
