According to Diario Gol, Perez made a crisis call to Inter Milan and agreed to pay more than £88m (€100m) for Icardi.
However, Zidane apparently threatened to quit Real if a deal for the Argentine was pushed through.
Zidane's opposition to signing Icardi is centred on his backing of Karim Benzema to rediscover his best form.
The French gaffer is also concerned about Icardi's personality and how it would impact the rest of his squad.
Mauro Icardi plays MESSY prank on teammate Daniele Padelli
Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
GETTY
Florentino Perez has seen his plan to sign Inter Milan star Mauro Icardi derailed this month
News of Zidane's refusal to sanction Icardi's arrival will have come as a boost to Cristiano Ronaldo and Sergio Ramos.
Ronaldo does not want Icardi to move to Real because he would challenge his status as top dog in Madrid.
Ramos, meanwhile, believes the Inter star would cause problems in the Bernabeu dressing room.
Diario Gol indicate Perez is unlikely to end his interest in Icardi though and could swoop if Zidane leaves Real in the summer.