Santiago Solari will remain as Real Madrid manager until the end of the season, but he will not be allowed to strengthen his squad in January.
Solari took the helm after Julen Lopetegui was sacked in October, but despite an initial improvement in results, the European champions find themselves further behind leaders Barcelona than they were when Solari was appointed.
After starting 2019 with a 2-2 draw against Villarreal and a 2-0 home defeat to Real Sociedad, there were rumours that Solari could be sacked just months after taking charge.
But according to El Partidazo de COPE, Solari will see out the season. However, he will not be given any transfer funds to improve his struggling squad in the transfer window this month.
The signing of Brahim Diaz from Manchester City will be the only bit of business done by Los Blancos this month, with Florentino Perez reserving funds for a squad overhaul next summer.
Real face Leganes in the last 16 of the Copa del Rey on Wednesday night. Barcelona have won the Copa del Rey in each of the last four seasons, with their rivals winning the competition just twice in the 21st century.
Of higher priority is the Champions League, which Real Madrid are aiming to win for a fourth year in succession. They have been drawn against Ajax in the last 16, with the first leg set to take place on 13 February.