Real Madrid are preparing to launch a £25m bid to prise Ilkay Gundogan away from Borussia Dortmund and have a principle agreement in place already, reports the Daily Express.
Both Arsenal and Manchester United were credited with an interest in the German international during the summer transfer window but neither clubs were able to agree a deal with the Champions League runners-up.
Arsenal were linked with a move for Gundogan as recently as last month by the Daily Mail, who reported Arsene Wenger is looking at several Germans to add to the already growing number at the Emirates.
Manchester United, on the other hand, were recently linked with a move for the player with the Daily Star suggesting David Moyes will attempt to bring him to Old Trafford after Sir Alex Ferguson failed to do so in 2011.
Reports in Spain also suggest that Real Madrid, who have been buoyed by the fact that Gundogan is yet to sign a new contract, are prepared to part with £25m to sign him ahead of the Premier League giants.