Rafael Benitez is keen to sign the 24-year-old Argentinian centre back and has made a £8m bid, according to reports.
But Real have offered him a new contract that matches Liverpool's salary offer.
"It's practically impossible that Milito will go," said chief executive Jeronimo Suarez.
Real keen to keep Milito
Last Updated : 21-Jul-2005 by"Our interest is to keep him and for that reason he has a very good offer from the club to extend and improve his contract."