The arrival of German Bernd Schuster as Real Madrid's new coach is proving more complicated than expected as current club Getafe are demanding 500,000 euros (680,000 dollars) in compensation from the Spanish champions, local media reported Tuesday.

Sports dailies AS and Marca reported that Real, or Schuster himself, could be forced to pay Getafe for breaking his contract.

Getafe president Angel Torres is demanding compensation, but Real are refusing to pay, meaning Schuster is not free to negotiate.

"If Schuster doesn't break his contract (with Getafe), he won't be coming. We don't negotiate with coaches who are not free," said Real president Ramon Calderon. Discussions could push back the expected arrival of the 47-year-old former German coach this week as Fabio Capello's successor.

It is also holding up the signature of Michael Laudrup as the new Getafe coach, Marca reported.

The Dane reportedly arrived in Madrid last weekend with his family.