According to Spanish outlet AS who cite the report of Madrid radio station, Real Madrid and Eden Hazard have reached an agreement for the Belgian's transfer in summer 2019.
After a summer of flirtation between club and player, the La Liga giants have agreed terms with Hazard, whose Chelsea contract expires in 2020.
Chelsea demand €170m, Madrid could seek Kovacic part-exchange
However, Chelsea will not Hazard go easily. The Premier League club value the attacking midfielder, 27, at around 170 million euros, a fee that Madrid would not be willing to shell out for a player that would be entering the final 12 months of his contract.
As a result, Madrid could seek to include Mateo Kovacic in the deal. Currently on loan in West London from Los Blancos, Kovacic doesn't want to return to the Bernabeu when his temporary Chelsea deal ends in the summer, and the five-time English champions would like the Croatian midfielder to stay on.
Chelsea working hard to convince Hazard to extend the contract
Hazard has frequently spoken of his desire to one day play for Madrid, notably doing so earlier this season in an interview in which he admitted he would also happily extend his contract at Chelsea, where he feels settled, is a fan idol, and has a club board desperate to persuade him to renew.
Hazard's coach, Maurizio Sarri, is also keen for Chelsea to keep the former Lille man, telling the media this week: "It's up to him. I think the club is available to sign a new contract immediately, but it's up to him if he wants to renew or not. I want Eden here, of course, but I want him here if he wants to stay here."
However, reports in the UK media have revealed that Chelsea's policy of only handing one-year contracts to players over 30 - Hazard would reach the milestone just over six months into a new deal - could prove a stumbling block in their attempts to hold onto him.