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Chelsea and Liverpool are both leading the race to sign Bournemouth defender Dean Huijsen, with any interested club needing to pay his £50million release clause.
Huijsen has been one of the standout players of the Premier League season, with the 19-year-old putting in some colossal displays in defence for the Cherries.
It would be difficult for Huijsen to say no to Madrid should they come calling, particularly as he is a Spain international, but he may also want to continue progressing in the Premier League.
The report says the Blues and the Reds have both been working on deals to sign Huijsen - with the former making more progress on signing him.
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However, it stresses that his future is still "very much up in the air" as he waits to weigh up all the interest and potential offers before making a decision on the next step.
It goes on to say that Liverpool's situation may change if Virgil van Dijk decides to sign a contract extension, which could mean the club could put off their attempts to sign a back-up defender.
Real Madrid are looking to the future in defence, with David Alaba and Antonio Rudiger both turning 32, so they will be looking to sign someone they can depend on for years to come.
The report says the Spanish giants feel they would have "considerable sway" if they enter the race to sign Huijsen, although they are yet to formally start work on a deal.
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