Real Madrid head coach Carlo Ancelotti has played down speculation linking his club with a move for Porto right-back Danilo.

Reports in the Spanish media on Friday suggested that a deal to bring Danilo to the Santiago Bernabeu at the end of the season was being finalised.

"Danilo? I like him but we are not thinking about signings," said Ancelotti.

"I don't have to speak with [Dani] Carvajal and Alvaro [Arbeloa] regarding Danilo.

"Rumours are normal during this time of the season."

La Liga leaders Real visit Athletic Bilbao on Saturday, and Ancelotti remains without the injured trio of Luka Modric, James Rodriguez and Sergio Ramos.

"James Rodriguez has not yet started training with the team and Sergio Ramos will start training with the team from Sunday," Ancelotti said.

"Luka Modric will not be in the squad to face Athletic Bilbao, but he will be against Schalke [in the UEFA Champions League] next week.

"It will be very difficult to win in Bilbao. I have total confidence in this team and I'm convinced that we are going to have a great season.

"The key to winning titles is you have to have confidence in what you do and you have to believe you can do it."