Vinicius Jr U-turn?! Real Madrid star ready to drop massive salary demands and moves closer to renewing contract despite Xabi Alonso tension

Vinicius' renewal saga has been a defining off-field story at Madrid this season. The Brazilian’s current contract runs until June 30, 2027, and talks first stalled two years ago when the club offered him around €20 million (£17m/$22m) per season, an amount he felt undervalued him at a moment when he was viewed internally as the club’s future superstar.

Back in 2023, with Karim Benzema gone and Jude Bellingham only beginning his Madrid journey, the Brazilian believed he deserved compensation befitting the club’s attacking focal point. His camp argued he was worth closer to €30m (£25m/$33m), placing him in the same bracket as Mbappe, whose current Madrid package reaches €23m (£19m/$25m) net annually with bonuses included. Negotiations continued into this season, but progress was limited.

The real setback came when reports claimed Vinicius informed the club he would not sign an extension “while his relationship with Alonso remains so strained.” The winger’s frustration grew as he was substituted repeatedly, omitted from starting lineups, and finished the full 90 minutes only four times all season. That, combined with Madrid’s dip in form, pushed the contract talks into a deep freeze until events in Greece shifted the mood.

Spanish reports suggested the tension between Vinicius and Alonso symbolised a broader split inside the squad. COPE revealed that six players - Vinicius, Federico Valverde, Rodrygo, Brahim Diaz, Endrick and Ferland Mendy were unhappy with the coach’s tactical choices and substitutions.

Vinicius, seen as the centre of the unrest, felt his role had been diminished. Being left out of major starting line-ups and used inconsistently only deepened his irritation. Meanwhile, the club’s marquee figures - Mbappe, Thibaut Courtois, Arda Guler, Dean Huijsen and Alvaro Carreras were said to be firmly behind Alonso.

The flashpoint came during the last Clasico, when the 25-year-old reacted angrily after being substituted. He issued a written apology days later but pointedly left Alonso’s name out. That omission strengthened the perception of a fractured relationship.

But according to reports Mundo Deportivo, Vinicius later apologised in person to both the staff and the full squad. And when Madrid beat Olympiacos 4-3 in Greece, Vinicius walked directly to Alonso at full-time, the two embracing publicly, signalling a desire to move forward and stabilise the situation.

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The shift in tone off the pitch has coincided with talks reopening on the financial side. Vinicius earns €15m gross per season under his current deal, and although his initial objective was to match or surpass Mbappe’s figures, Mundo Deportivo now indicate that he is prepared to accept significantly lower terms than his earlier €30m target.

His willingness to compromise stems from several evolving factors. His form has dipped, with just 11 goals in his last 40 league and Champions League appearances, reducing the leverage he once held. At the same time, no major European club has made a concrete approach for him, despite speculative links to Manchester City, Chelsea and Paris Saint-Germain, which has further softened his negotiating position. There is also a growing understanding within his camp that Madrid remain the club best positioned to maximise his long-term potential and keep his Ballon d’Or ambitions alive. Most importantly, the tension with Alonso appears to have cooled after recent conciliatory gestures, removing one of the biggest emotional obstacles to signing a new deal.

Together, these developments represent the first real breakthrough in more than two years of stalling negotiations. The player and the club are now described as aligned once again, with both sides optimistic about reaching a final agreement in the coming months. It is also a crucial moment, as Vinicius would be free to negotiate with other clubs from January 2027, once he enters the final six months of his existing contract, a scenario Los Blancos are determined to avoid at all costs.

The Brazilian now enters a crucial stretch: the final 18 months of his contract and a pivotal moment in his Madrid career. His market value will decline with every passing month unless a renewal is sealed. The club want clarity before the summer window opens in 2026; the player wants assurances on his role and long-term project fit.

On the pitch, he still has the opportunity to reverse his recent decline and re-establish himself as a decisive figure alongside Mbappe and Bellingham. Off it, Madrid expect discussions to accelerate before the end of the season, with both sides confident a middle ground can be reached. All eyes now turn to the negotiation table where Vinicius Jr’s future at the Bernabeu will be decided once and for all.