The Peruvian international has been strongly linked with a move to the Bernabeu next season.

"I have heard these rumours regarding Real Madrid's reported interest in Vargas and we acknowledge it and move on," said Fiorentina sporting director Pantaleo Corvino.

"We are used to having players being linked to clubs.

"But we are here not to sell but to keep our players and improve our squad.

"We will only sell those who don't want to remain at the club and in that case, we will try to get the best possible deal."

Vargas is considered the new Roberto Carlos and has been a key player in Cesare Prandelli's squad since joining the Viola last year in a 12million euro transfer from Catania.

He is under contract with the Florence-based outfit until June 2012.