Florentino Perez is set to pay €90m (£64m) for Manchester City forward Sergio Aguero, according to Mundo Deportivo.
Reports in Spanish press claim that the Santiago Bernabeu giants are interested in making a move for the Argentine forward and are preparing a £63m summer bid.
Madrid have struggled to replicate the success of last season, having failed to retain the Champions League and push Barcelona to the title and Copa del Rey, being knocked out by the Catalans in the latter.
Aguero has once again won the Golden Boot in the Premier League, having scored 26 goals this season.
Having signed a new five-year contract recently, many expect the striker to remain at the Etihad stadium but Madrid’s interest will now cause doubts, prompting a thought that he would like to return to the Spanish capital where he had success with Atletico Madrid.
Aguero became a City legend in 2012 when he scored the title winning goal for the club.