The 32-year-old had been expected ot leave the club after being left "angry and hurt" by what he perceived to be a lack of support from Real in the face of accusations of tax evasion.
Several sides were linked with a move, including French giants PSG and former club Manchester United.
The 'Daily Mail' even reports that Ronaldo went as far as having a secret meeting with PSG president Nasser Al-Khelafi, hours before Real's Champions League final victory over Juventus.
However, it now appears that the player may have had a significant change of heart.
Spanish newspaper 'AS' reports that the Portuguese has decided to stay in the Spanish capital, after senior club figures assured him of his importance to their plans.
Despite Ronaldo having a court date booked for July 31, it appears that he now feels that it would be best to stay at the Bernabeu.
The former Manchester United man is currently on holiday following his Confederations Cup exploits with Portugal. Ronaldo's side made it to the semi-finals before being dumped out on penalties by eventual runners-up Chile.