Real were linked with the 21-year-old midfielder in the Spanish press this week as an ideal replacement for Sami Khedira, who is a reported target for Arsenal and Chelsea.
Silva broke into the first team and made his Cruzeiro debut in 2012, with the Brazil Under-20 international a prominent member of the Serie A-winning side of 2013.
While the central midfielder made no secret of his desire to play for Real, he said he remains focused on his current club.
"Of course I'd like to play for Real Madrid, it would be an honour," he told Marca.
"But, for that to happen, an agreement between the clubs would need to be put in place first. I'm a Cruzeiro player and have so much respect for my club.
"If a club like Real Madrid came along, I wouldn't turn them down.
"When a club like Real Madrid want you, it always makes you feel proud and happy.
"I know that I have to be focused here at Cruzeiro, that's my club, but interest from Real Madrid inspires me to keep working hard."
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