Barcelona 'pull out of talks with Bayern Munich's David Alaba'

Real Madrid have emerged as the favourites to sign David Alaba after Barcelona reportedly pulled out of talks for the Bayern Munich ace.

The Austria international looks set to leave the Allianz Arena when his contract expires at the end of the campaign.

Alaba has been unable to agree fresh terms with Bayern, and Barca were rumoured to be locked in discussions with the 28-year-old.

However, a report carried by the Daily Mail suggests that the Catalan giants have put all transfer activity on hold due to concerns over finances.

That has opened the way for La Liga rivals Madrid to pounce, with the reigning Spanish champions said to be more willing to match Alaba's high wage demands.

Alaba has also previously been linked with a move to Manchester United.