According to Relevo's Matteo Moretto, the Spanish giants are set to active the €8 million and bring the 20-year-old back to the club.
Paz joined Como for a reported fee of €6 million last summer and has established himself as one of the best young talents in Italy under Cesc Fabregas.
The Argentinian was a key player for Como as the newly promoted side secured a tenth placed finish in Serie A, scoring six goals and providing eight assists.
Incoming Real Madrid manager Xabi Alonso is understood to be a big fan of Paz as he seeks to bring in some young talent to an aging squad.