The Barcelona defender says he thought about los Blancos' offer "for two seconds" but says he could not imagine himself at Santiago Bernabeu
The 23-year-old recently signalled his intention to remain at Camp Nou for the foreseeable future by signing a contract extention until the summer of 2017.
However, he has now claimed that he had a lucrative offer from his side's arch rivals three years ago, but talks with Carles Puyol convinced him to remain in Catalunya.
"They offered the best pay at Castilla - triple what Barca were giving me," he told El Pais.
"I thought about it for two seconds... Madrid? I don't see myself there!
"With my first contract renewal in 2011, everyone told me to go and I was the only one who wanted to stay. I spoke with Carles Puyol and he told me that when he first signed new deals, he was being paid less.
"But he never said anything because he trusted himself."