As revealed by Goal, the reigning Premier League champions made a bid of £125 million for the 24-year-old, though Tottenham were adamant they would not sell to a divisional rival.
|22/1||Gareth Bale is 22/1 with Paddy Power to be La Liga's top scorer
“Tottenham initially did not want to sell, but when we heard Manchester United made an offer, we tabled a bid ourselves,” the Madrid president told Cadena SER.
“His childhood dream to play for Madrid eventually proved to be decisive.”
Bale moved to the Santiago Bernabeu for a world-record £86 million and Perez has defended the fee, insisting that last season's La Liga runners-up did not pay over the odds for the Welshman.
“Bale came to Madrid relatively cheap,” the Blancos chief continued.
“Signing the best players out there is Madrid's philosophy and Bale was the best available player this summer. We had been following him for two years.”
The 24-year-old scored on his official Madrid debut against Villarreal, but missed this weekend's win over Getafe due to a thigh problem, though should be match fit in time for the upcoming derby against Atletico Madrid.