Lazio closing on Mendieta as Real give up hope

Valencia have reached an agreement with Serie A club Lazio to sell their unsettled captain Gaizka Mendieta after Real Madrid admitted defeat in the race to sign the talented midfielder.

Valencia's new president Jaime Orti said the two clubs had reached an agreement, but added that the player had not yet given his approval to the transfer.

The Spanish club are reported to have accepted an offer of 7,500 million pesetas ($38.37 million).

The 27-year-old Spanish international announced on Sunday that he wanted to leave Valencia and asked the club to consider offers from interested teams. Real are widely believed to have been his preferred destination.

Earlier on Tuesday, though, Real admitted that they had given up hope of signing Mendieta after Valencia made it clear that they would not negotiate with the Spanish champions.

"It appears that Mendieta will not be coming to Real Madrid after all," Real's sporting director Jorge Valdano told reporters.

Orti said he was pleased that Real had withdrawn from the chase.

"We are glad that they are going to leave him alone," he said. "The way is still open for the player if he wants to leave but the direction towards Real Madrid is blocked. We must look after our own interests," said Orti, who was anxious that Mendieta did not strengthen one of Valencia's main rivals.

Lazio are looking to strengthen their midfield after selling Argentine Juan Veron to England's Manchester United and Czech Pavel Nedved to Serie A rivals Juventus last week.