Borussia Dortmund has denied having an agreement in place with Real Madrid that allows them to have the first option on Marco Reus, according to chief executive Hans-Joachim Watzke.

The attacking midfielder’s contract with Dortmund runs to 2017 but he has a €25 million (£20m) buyout clause, a fact that was revealed by his admirers Bayern Munich.

“This is complete nonsense that there is an option right agreement,” said Watzke. “Marco alone will decide where he will go. If he decides to make use of the clause there is nothing we can do.”

Carlo Ancelotti said on Tuesday that Reus was “the best German player”, apart from Sami Khedira and Toni Kroos, who both already play at the Spanish club.

His agent Dirk Hebel has insisted there has been no contact with Bayern Munich. “There are no negotiations between Marco and Bayern. There has never been any contact,” he told Kicker magazine.