Real make U-turn to deny having agreed upon new coach

MADRID, Mar 27 (Reuters) Real Madrid have said there is no deal in place with a new coach, going back on president Fernando Martin's assertions a week ago that he had chosen a successor to Juan Ramon Lopez Caro.

In an official statement, the club said: ''Contrary to what has been reported in the Spanish and European media the club has made no decision on who will be the club's coach next season.

The club has no agreement or contract with any coach.'' Last week Martin, who replaced Florentino Perez in February, was interviewed by Spanish daily El Mundo where he said: ''I know who will be the new coach and I'm not going to name any names.'' Martin has made it clear that he is looking for a replacement for Lopez Caro, who he believes lacks experience at the highest level after being promoted from B team coach to replace Vanderlei Luxemburgo in December.

Spanish media continue to tout AC Milan coach Carlo Ancelotti as favourite to take over at the Bernabeu in July, despite his having signed a contract extension until 2008 with the Italian club last week.

''I have decided to stay with Milan, who have always been my team. They are my first choice,'' Ancelotti was quoted as saying in sports daily Marca today.

''The decision is definitive but anything can happen in football.'' Arsenal's Arsene Wenger, Liverpool's Rafa Benitez and Fabio Capello of Juventus have all distanced themselves from the Real job in recent weeks.

Other than Ancelotti, Spanish media have put forward former coach Vicente del Bosque, ex-Real Madrid players Bernd Schuster and Hugo Sanchez and departing England manager Sven-Goran Eriksson as potential targets.

Guus Hiddink's decision last week to leave PSV Eindhoven at the end of the season has put him on the list for a possible return to Madrid as well.

Real are second in the Primera Liga, 11 points behind leaders Barcelona, who they visit on Saturday, with eight games left.

REUTERS PM BST1740