Luka Jovic has been in the middle of transfer speculation all year and been linked with a string of major European clubs, including Madrid's rivals Barcelona.
But now Los Blancos have emerged as favourites to sign the striker who has scored 25 goals this season, according to AS.
It was thought that the Serbian may stay put after joining Frankfurt on a permanent basis from Benfica recently, but it appears to have been a mandatory clause to make the deal permanent and help Frankfurt maximise potential profit.
Frankfurt sporting director Bobic has outlined his 'realistic' outlook on the situation.
"There's a real possibility that Jovic signs for Real Madrid," he said in an interview with ZDF.
"I hope and want him to stay here at Eintracht, but I'm also realistic and know that if a big club like Real Madrid want him then we haven't got a chance of keeping him."
