TalkSPORT reports how the highly-rated teenager has been impressing for the Los Blancos U18 side, who won their first 16 games of the 2012/13 campaign.
A creative midfielder with two good feet and the ability to break into the box to score goals, Medran has all the tools to become a top player.
After just two years in the Spanish capital, he has already moved up to Real Madrid's C-team, who currently play in the Spanish third division (Segunda B).
Jose Mourinho has moved quickly to quash Chelsea's attempts to lure Medran to Stamford Bridge, by tying up one of the club's most prized up-and-coming assets with a four-year contract offer.
Interim Chelsea manager Rafa Benitez has been tasked with continuing the rebuilding of an ageing senior squad in west London, and has been credited with an interest in bringing the young midfielder to the Premier League.
The Blues have a strong Spanish contingent with Fernando Torres, Juan Mata, Oriol Romeu and Cesar Azpilicueta all plying their trades with Chelsea under the temporary guidance of fellow compatriot Benitez.
But, the club's hopes of securing Medran's signature have been dealt a blow with rumours the 18-year-old is poised to commit his long-term future to the Santiago Bernabeu.