It seems that the arrival of Diego Llorente has become stagnant in the past days for different factors. For one, Zidane seems to rate Llorente highly and wants to see how he fares in the preseason stage for Los Blancos. Secondly, Nacho Fernandez's situation hasn't been solved either. Much of Llorente's arrival to Villarreal depends on whether Nacho stays or leaves the White House. Lastly, Sergio Ramos and Pepe's prolonged stays while playing at the Euro with their national teams means that they will be the lasts to join Madrid's preseason stage, therefore, Zidane wants to have enough defenders for the start of preseason.
So far, Madrid only have Varane, Nacho and Llorente to confront the preseason. And even then, Varane's situation isn't very clear either as he's been approached by other teams who are looking to snap him away.
Zidane's refusal to cede Llorente is complicating things quite a bit for Villarreal. First of all, Villarreal only has three central defenders confirmed so far, and the club is still pending a response from the AFA because Villarreal are not obliged to release Musacchio to the Olympic games in Rio.