Werder Bremen director Klaus Filbry said Real Madrid would rather pay a fine than play a friendly match against them in the off-season.
The Spanish giants are due to embark on a tour to either the United States or Asia after Euro 2012, but were also pencilled in to face the Bundesliga side as part of the deal to bring Mesut Ozil to the Santiago Bernabeu last year.
However, according to the finance official, Real have informed Bremen of their intention to break the agreement and instead look elsewhere for lucrative opportunities during the close season.
It seems Real will not play against us and would rather pay a fine than do so, Filbry told Kreiszeitung.
They have given their preference to a summer tournament in the US or Asia, which would obviously bear more lucrative opportunities for them, than come here to play against us.
Ozil had been transferred to Madrid on the back of impressive performances with Germany at the 2010 World Cup, for a fee in the region of 15 million euros.
