Real Madrid president Florentino Perez has warned that the club "have got to be realistic" regarding their chances of persuading Sergio Ramos to sign a new deal.

The long-serving skipper is set to be out of contract at the end of the season and has been strongly linked with a move to Paris Saint-Germain.

Ramos, who has spent the past 16 seasons with Madrid, is supposedly after an improved contract offer from the Spanish giants.

However, Perez has admitted that it will be difficult to reach an agreement with the centre-back given the current financial climate.

"We're in a very tough situation where no one has the money anymore," he is quoted as saying by Marca.

"We've got to be realistic. I've never said that he won't stay. At the moment we're completing this season and after that we can see about next year."

Ramos has recently been sidelined through a mixture of injury and coronavirus, meaning that he will play no part in Madrid's trip to Cadiz on Wednesday.