Primera Division side Granada have confirmed their interest in signing Spanish forward Michu from Swansea.
Swansea are keen to sell the Spain international, who has one year left on his contract, and the 29-year-old has been linked with a return to La Liga.
"We like Michu a lot," Granada sporting director Juan Carlos Cordero said to Spanish sports newspaper Marca. "W e have spoken to him and with his agent, but there is no agreement nor have we begun negotiations.
"He would be a very important player for Granada but he has a contract with his club.
"We have players in that position and we also have a budget that we must respect."
Michu enjoyed an impressive first season in England when he scored 22 goals in 2012-13 for Swansea following his £2million move from Rayo Vallecano.
His strong performances saw him capped by Spain and helped Swansea qualify for Europe by winning the Capital One Cup.
Michu's second season was disrupted by injury and he scored only six times in 25 games.
The Spaniard was sent out on loan to Napoli last season but an injury-plagued campaign saw him make just five appearances for the Serie A club.
Should Michu join Granada he would work again under manager Jose Ramon Sandoval, who coached him at Rayo.
"He has a very good relationship with Sandoval," Cordero said. "He was the one that gave him the opportunity to play in the Primera Division and he had a great season at Rayo working with Sandoval."
Granada narrowly avoided relegation and finished 17th in La Liga in the 2014-15 campaign.
Source: PA