Balague told this week's Revista that Real believed they had agreed a deal to sign the Tottenham forward, who missed training on Tuesday against his club's wishes, for 100m euros last Wednesday.
Only for Tottenham chairman Daniel Levy to "move the goalposts" and Real to respond by submitting a lower offer for the player, believed to be around 90m euros, potentially due to concerns from Ronaldo.
Bale is said to be 'furious and frustrated' that his dream move to Madrid has stalled but Balague insists he will soon be playing for Real.
"Real Madrid on Wednesday thought that they had a deal but it has not been confirmed and it won't be confirmed until Daniel Levy decides so," Balague told Revista. "I think he is quickly becoming, if he hasn't already, the toughest negotiator in world football."
Balague continued: "On Wednesday night some of us were briefed that the deal was done. There was a fee agreed and it was about to happen. Some people mentioned Thursday or Friday as a possibility, then Monday or Tuesday.
"But Real Madrid were so clear that they had finally got an agreement that they put a stage up to receive Gareth Bale and with it being a massive transfer fee they wanted to do it the way they normally do it with a lot of press and media and fans.
"The whole thing was geared up for the deal to come through. The fee had been agreed and it was just a matter of signing."
However, Balague says Spurs then "put the brakes on" and Real responded by tabling a lower offer of 90m euros due to the concerns of Ronaldo, who is currently negotiating a new contract with the club and wants to remain as the most expensive player in history.
"Real Madrid have changed the fee they have put in for Bale and Cristiano Ronaldo is the reason for it," Balague said. "Perez was going to pay 100m euros, which is more than the 96m euros they paid for Ronaldo, so Ronaldo and his people asked, 'what is this 100m'?
"So they (Real Madrid) say to Spurs, 'instead of 100m in six payments it is now going to 90m euros'. Cristiano Ronaldo still feels he has to be treated as the number one person at Real Madrid, so 96m euros should never be overcome. That is going to be interesting when it all happens and Gareth Bale goes to Real Madrid.
"Florentino Perez on one hand has this issue of having to deal with the happiness of Ronaldo and then with the issue of Daniel Levy just changing the goalposts a little bit. But in any case it just looks like a matter of time.
"According to Real Madrid this morning it will all happen. When I don't think they even know anymore. There have been stories in the papers in Spain this morning that he will be presented on Sunday. I don't think anyone knows anymore but we all think it will happen and Real certainly think it will happen."
Gerry Armstrong believes Bale will play from wide on the right or behind the central striker, and ultimately prove to be a big success in Madrid.
Asked where he thinks Bale will be next week, he said: "I think he will be a Real Madrid player. I think that is the logical solution for both the club and the player. It is going to be a fantastic fee - whatever way it works out.
"It is a great opportunity for a 24-year-old to play for Real Madrid - a once in a lifetime opportunity. I think he will do really well. There has been such an exodus of quality players coming out of La Liga, it will be great to see another world-class player going in."