The London club had offered around £7.5m but had withdrawn it due to other players becoming available, the newspaper said.
Madrid had accepted the offer but Geremi was yet to state whether he would accept the move, Marca added.
A spokesman for Madrid declined to comment on the report.
Geremi is said to be one of twelve players that the European Cup holders want to offload in the summer to raise cash for new signings.
Chelsea have also been linked with Real's Brazilian midfielder Flavio Conseicao, but there is no indication as to whether their interest remains.
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