The Austria international is in the final year of his contract with the European champions and will be free to negotiate with other clubs in January.
According to Marca, the versatile defender’s preference is to join Real Madrid and the Spanish giants are interested in securing his services.
Madrid will wait until New Year to open talks, as Alaba will be free to make pre-contract agreements and enter formal negotiations from that date.
Bayern haven’t managed to come to a financial agreement with the 28-year-old to extend his stay in Bavaria and are now set to lose him for nothing.
Alaba is said to be demanding around €10 million per year and the Premier League side are willing to fork out a lot of money to secure his services.
However, the Austria international’s wish is to play in Spain, making Madrid the frontrunners.
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