The 21-year-old excelled while on loan at Recreativo de Huelva this season.

He had been rumoured to be one of Barcelona's top targets this summer as they look to rebuild under new coach Pep Guardiola.

Villarreal president Fernando Roig told Spanish newspaper El Mundo Deportivo that the bid from Barca had been rejected as the Castellon club deemed it "unsatisfactory".

"This morning an offer arrived from Barcelona for our player Martin Caceres, which we have deemed as unsatisfactory and therefore have rejected," he said.

However, Roig added that the club may be willing to do business if Barca return with a higher bid.

"We are in a situation whereby we will negotiate with Barcelona," Roig continued.

"If the offer they make us is what we would deem to be a good option, then okay.

"If not, the player has four years remaining on his contract and he will be a Villarreal player."

Caceres joined the Yellow Submarine last year from Uruguayan club Defensor, but has yet to feature for the Spanish side.