The France international’s contract in the French capital expires this summer and he has been linked with Premier League sides Liverpool and Arsenal.
However, El Mundo Deportivo reported on Thursday that the 24-year-old already has an agreement in place to join the Merengues at the end of the season.
Madrid coach Zinedine Zidane is said to be keen on securing the services of the midfielder as he looks to revamp his squad in the summer after a disappointing campaign.
Real Madrid were knocked out of the Champions League by Ajax at the last-16 stage and are third in La Liga, 13 points behind leaders Barcelona.
Rabiot hasn’t featured for PSG in four months, with the Ligue 1 leaders refusing to play him while his contract situation remains unresolved.
As things stand, he will leave the club on a free transfer when his deal expires on 30 June.
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Alasdair Mackenzie is a freelance journalist based in Rome, and a FourFourTwo contributor since 2015. When not pulling on the FFT shirt, he can be found at Reuters, The Times and the i. An Italophile since growing up on a diet of Football Italia on Channel 4, he now counts himself among thousands of fans sharing a passion for Ross County and Lazio.
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