The Bernabéu board are thought to be close to an agreement for the Manchester City youngster but will face competition from the Ligue 1 giants.
Real Madrid are keeping a close eye on Manchester City midfielder Brahim Díaz but could face some serious competition for the Spain under-21 international from Paris Saint-Germain.
Díaz is under contract at the Etihad until June 2019 and Madrid have launched a charm offensive to persuade the 19-year-old Málaga-born player not to renew and to move to the Bernabéu next summer with Díaz apparently keen to move to LaLiga.
However, PSG have now entered the fray and are preparing an offer for the midfielder, whose advisers have suggested he wait and see what is on the table at the Parc des Princes. City are also keen to keep Díaz and hold a trump card when the matter makes it to the negotiating table: his agent is Pere Guardiola, the brother of Manchester City manager Pep.
Guardiola: "We want him but it doesn’t depend on us"
There is a possibility that Madrid may make their move in January with Díaz free to talk to non-Premier League clubs, but City will only entertain that notion if they have their pick of Real Madrid’s academy. The Bernabéu though would prefer a deal in the winter market to include a transfer fee and not a part-exchange.
City were willing last summer to let Díaz leave on loan, if he signed a new contract with the Premier League club. However, the player decided to stay and fight for a place in Guardiola’s first team but given the wealth of talent in his position – Raheem Sterling, Leroy Sané and Riyad Mahrez – he has been handed few opportunities to impress, making just three senior appearances this season.
"Brahim knows what we want for all of our young players," Guardiola said a month ago. "We want to protect them, help them... that goes for him all of the players in the academy. We want him but it doesn’t depend on us, it is the agent, him, family - they decide".