Real Madrid and Vinicius Junior are reportedly still at an impasse over a new contract, with the Brazilian forward seeking significantly improved terms as negotiations continue.

The 26-year-old remains one of the Spanish club’s most influential players, but discussions over an extension have yet to produce an agreement.

Reports indicate that while Madrid have tabled an improved offer, the winger is holding out for a higher salary before committing his long-term future to the European giants.

The ongoing stalemate has fueled speculation about his future, with Premier League side Arsenal among the clubs linked with the Brazil international.

However, the financial demands involved are expected to make any potential transfer extremely difficult.

Football analyst Terry Gibson believes the situation has dragged on for well over a year, with neither Vinicius nor Real Madrid willing to compromise on their respective positions.

According to him, the club is also exploring alternatives in the transfer market should negotiations fail to reach a successful conclusion.

One of the names reportedly under consideration is RB Leipzig’s Yan Diomande, who is being monitored as a possible long-term replacement if the contract dispute remains unresolved.

Despite the transfer speculation, any move away from the Santiago Bernabéu would require a club willing to meet both Real Madrid’s valuation and Vinicius’ substantial wage expectations. Gibson suggested that such financial commitments could prove challenging, even for England’s wealthiest clubs.

For now, Vinicius remains a Real Madrid player, and talks are expected to continue as both parties attempt to find common ground.

The coming weeks could prove crucial in determining whether the Brazilian extends his stay in Spain or if one of Europe’s biggest transfer stories gathers further momentum ahead of the new season.