Real Madrid to deal with Varane's situation first, then Sergio Ramos'
Real Madrid will deal with the French centre-back. Once that matter has been resolved, the club can start looking at Ramos' contract renewal.
Real Madrid have two major issues to sort out in central defence - Raphaël Varane and Sergio Ramos. The players' circumstances are different, but connected enough that their respective situations will impact each other. For Madrid, the priority is to deal with Varane and then Ramos. Once the French defender's future is sorted, the club can resolve the issue of the captain's.
For several months, Varane has had an offer on the table to renew with Madrid. His current contract will expire in June 2022. Initially, he didn't appear to be especially interested in extending his contract; he had contemplated leaving at the start of 2019 in search of new challenges elsewhere but Zidane's arrival made him change his mind. A few weeks ago, Varane's agents presented Madrid with a counter-offer - one which included a significant increase to his salary. However, handing out pay rises doesn't fit with club policy at the moment - Madrid are asking the players who are renewing terms to take a pay cut so it is unlikely that they will bow to Varane's demands.
The club has known for some time that a number of key players could leave this summer and selling some of them on will help finance rebuilding the squad. Florentino Pérez admitted so himself during his interviews with El Chiringuito, El Larguero and Diario AS. And Varane is one of the most valuable players in the squad. He is vastly experienced (having won four Champions Leagues plus the World Cup with France), and at 28, he is valued by Transfermarkt at 70 million euros. That is a figure which Madrid would only be too happy to accept, especially as Varane will be entering the final year of his contract, and could leave for free in 2022.
Alaba, Nacho, Militao... and another defender
Madrid have an agreement in place with David Alaba, who will join on a free transfer from Bayern Munich and will earn 11 million euros net. With Nacho (whose contract runs out in 2022, although Madrid are confident he will renew) and Militão (who is starting to find his place following his 50 million euro transfer from Porto), there will be room for one more central defender in the squad, while the outcome of Varane and Ramos' respective situations remain unresolved. If Madrid don't manage to sell Varane this summer, it is unlikely they will renew Ramos' contract; But if they can find a buyer for Varane, the chances of Ramos agreeing to a new deal will increase.
The situation with Ramos is not entirely economic. The centre-back, who has struggled with injuries since the start of the year, would need to agree to a 10% pay cut, as requested by the club, but he also wants a two-year deal. Madrid feel that a player aged 35 should renew season on season, and that is the main obstacle at the moment. Varane's transfer this summer would help to move negotiations along, and allow Ramos and Florentino Pérez to reach some common ground.
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