(CNN) -- Spanish champions Real Madrid have failed in their bid to sign international midfielder Santi Cazorla, who has renewed his contract with Villarreal.

Cazorla helped Spain to win the Euro 2008 championship this summer.
"I feel really good at Villarreal and it is for this reason that we quickly reached an agreement," he told a joint news conference with club president Fernando Ruig.
The 23-year-old attacking midfielder, a member of Spain's Euro 2008 winning squad, has extended his stay with Villarreal until June 30, 2014.
"He is a super-important player for us, we have finished out recruitment and we can't make changes three days before the start of the championship," said Ruig.
Villarreal will double Cazorla's annual salary to $2.9 million after Real offered $2.2 million reported daily newspaper El Mundo.
Real were ready to pay the player's buyout clause of $23.5 million but Villarreal demanded $41.2 million, news radio Cadena Ser reported earlier on Wednesday.
Sunderland signed West Ham defender Anton Ferdinand for an undisclosed fee on Wednesday.
Ferdinand, the brother of Manchester United and England defender Rio, agreed a four-year deal with the Premier League club and becomes Roy Keane's ninth signing since the end of last season.
England Under-21 center-back Ferdinand, who is believed to have cost around $14.7 million will miss Wednesday's League Cup tie at Nottingham Forest because of a hamstring strain and could make his debut against Wigan on September 13.
England Under-21 midfielder James Milner has handed in a transfer request at Newcastle, a day after scoring for the Premier League club.
"The club is very disappointed that James sees his footballing future as being away from St. James' Park," a Newcastle statement said Wednesday.
"He is a valued member of the squad and it is only a year ago that he signed an improved contract."
Milner, 22, scored for Newcastle in a 3-2 win at Coventry in the League Cup on Tuesday, but submitted his request Wednesday morning.
Newcastle has not received any acceptable offers for Milner.
"We have yet to receive an offer for James that has matched our valuation of him," Newcastle said. "However, should such an offer be received then the club would reluctantly be forced to consider it, given James' apparent desire to leave."
Milner made his Premier League debut for Leeds at the age of 16 and broke Wayne Rooney's record as the league's youngest ever scorer with a goal against Sunderland, aged 16 years and 357 days.
Leeds was relegated in 2004 and Milner joined Newcastle, but after a season at St. James' Park he was loaned to Aston Villa for the 2005-06 season.
Milner has made six appearances for the England under-21 side.
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