Carlo Ancelotti has reportedly placed Reece James high on Real Madrid's list of transfer targets this summer.
The Chelsea right-back impressed in both Champions League games against the Laliga side this month.
Real's scouting department scrutinised James' performances and they will now make a summer move for the England international.
That's according to the Mirror, who claim Real have watched James at least nine times this season, with a view to making a bid.
Ancelotti wants to 'reshape' his team and he believes the Blues' defender is the right player to sign.
Dani Carvajal and Lucas Vazquez currently fill the right-back role, but Real want to upgrade on the pair.
However, they will have to offload several players before there can be any incomings.
Real side realise James will be costly but they believe the 22-year-old can improve even further.
James came through the Chelsea ranks and has made 31 appearances across all competitions this season - with six goals and seven assists.
Meanwhile, Ancelotti's team went 15 points clear at the top of the league after their comeback 3-2 win over Sevilla on Sunday.
The 62-year-old was left impressed with his players' fightback, saying: 'It's a very important win after a first half that wasn't good.
'The second half was spectacular for us. We showed commitment, personality and courage from all the players.
'We're getting used to this because this team is capable of special things.
'We haven't lost confidence at 2-0 down and the games against PSG and Chelsea have helped us to believe we can come back.
'Everyone is waiting for Madrid to slip, but this team doesn't do it, because they have heart, character and personality. We haven't won the league yet, but we've given it a good push with this win.'