"We think he is probably out of our reach and bigger clubs than Blackburn will take him if Portsmouth decide they are going to sell him. No-one has said to me from Portsmouth that he is for sale, so we haven't done anything from that point of view."
Van Nistelrooy spent five seasons at Old Trafford, scoring 150 goals in fewer than 200 games over five seasons.
The Dutch striker moved to Real in the summer of 2006, but he has fallen down the pecking order at the Bernabeu following the Spanish side's signings of Kaka and Cristiano Ronaldo in recent weeks.
Van Nistelrooy, who is also thought to be a target of Tottenham manager Harry Redknapp, is rumoured to be available for £1.5m.
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