Karim Benzema scored his second goal in as many games as Arsenal's hopes of signing the Real Madrid striker became scarcer.
The Gunners inquired about the Frenchman and Madrid winger Angel di María's availability last week, but Benzema's potent start to the Primera Liga campaign has confirmed his first-choice status at the Santiago Bernabéu.
Gonzalo Higuaín, who Arsenal declined to sign earlier this summer,'s departure for Napoli means Benzema, 25, is the outstanding striker in Carlo Ancelotti's squad.
Benzema is Madrid's first-choice striker
Promising Spain Under-21 international Alvaro Morata is still too raw to be considered a regular starter, and Benzema has capitalised in Higuaín's absence.
He finished from close range in the first half at the Estadio Nuevo Los Cármenes after Cristiano Ronaldo failed to control the ball for the only goal of the game.
Granada 0-1 Madrid
Mesut Özil, linked with a transfer to Manchester United, walked down the tunnel when he was withdrawn in the 65th minute.
Özil is invariably substituted in Spain but doubts linger over his future at Madrid.