The Portuguese international was set to move to Old Trafford a season-long loan, but a failure to process the necessary paperwork on time saw the agreement fall through.
Rumours suggest that the 25-year-old is surplus to requirements under new boss Carlo Ancelotti, who was believed to be desperate to offload him over the summer.
But, Coentrao has revealed that he is happy to have stayed with Real, and does not regret his switch to United failing to materialise.
“There was the possibility of joining Manchester United, but I stayed at Real Madrid, and that’s what matters,” he said.
“It would have been bad if I had to stay despite having the chance to move to a better club, but that didn’t happen as I already am at the best club in the world.
“I want to do better than I did last season, although I was at a very high level already. I want to show everyone that I deserve to be at Real Madrid.”
David Moyes turned to Coentrao after admitting defeat in his pursuit of Everton’s Leighton Baines.
Tottenham were also keen on the attacking full-back, who was expected to be made a part of Gareth Bale’s record breaking move to Madrid.
Should Manchester United return for Fabio Coentrao in January?
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