The Colombian striker—nearing a return from long-term injury—seemed to rule out the much-rumoured switch when he said he wanted to stay at Monaco, as per David Kent of the Daily Mail: "I believe in Monaco's project. I want to stay here and play Champions League football with Monaco."
However, French outlet Le10 Sport is now reporting that a deal has been agreed for the 28-year-old to move to the Bernabeu, via Tom Conn of Inside Spanish Football.
Simon Jones of the Daily Mail reports the details of the supposed agreement, which initially involves a loan move for Falcao: "Falcao has been the subject of a loan offer from Madrid who are concerned about proof of his recovery from cruciate surgery. The deal would be around £10m for the year with a view to a permanent deal next summer."
If Los Blancos do indeed claim the services of the former Atletico Madrid player, it would be their second high-profile purchase from Monaco this summer after they bought James Rodriguez for £71 million last month.
Falcao's Colombian teammate is eager to see his compatriot join him in Madrid, the pair having played together in both Ligue 1 and at Porto, as per AS (via Jones' report):
I am sure he could play here. But it is not up to me to decide if he will come. It is the decision of the President. He can come because he has the quality and the mentality of a winner. I’ve known him for four years and have played by his side. We were only separated when he left for Atletico. He has a winning mentality and that’s something you want at Madrid. I hope he can come.
Falcao's arrival would add further world-class talent to a side that already includes the likes of Rodriguez, Cristiano Ronaldo and Gareth Bale, with the Madrid outfit winning the Champions League last season.
However, there is a question surrounding whether Real actually even need Falcao considering the supreme depth of their attacking unit and the presence of Karim Benzema in the squad.
The Frenchman bagged 17 goals in La Liga last season, admirably assisting Ronaldo—who scored 31 league goals—and Falcao's arrival would likely unsettle Benzema. However, La Liga writer Andy West reckons the Colombian's arrival would be worth it:
While Falcao may be set for a loan move to Madrid, Angel Di Maria is reportedly on his way out of the Bernabeu, also on loan.
According to Sport (via Ligue 1 journalist Jonathan Johnson), French champions Paris Saint-Germain are looking to bring in the Argentinian for a season-long loan ahead of a permanent move next year:
Football writer Ian Holyman reports that the structure of the deal is a way for PSG to work around their Financial Fair Play restrictions:
Meanwhile, the Ligue 1 side's star striker Edinson Cavani will seemingly be delighted at the arrival of Di Maria, having previously expressed his admiration for the player, as per French paper L'Equipe (via Alex Harris of the Daily Express): "We are always looking to add new elements to the team. Angel di Maria is of high quality, a fantastic player. He would be welcome in the team."
Di Maria had a phenomenal season for Real in 2013-14, scoring four goals in La Liga and providing an incredible 17 assists, as per WhoScored.com.
He was fantastic as Real won the Champions League through a final win against Atletico, but the arrival of Rodriguez has seemingly paved the way for the 26-year-old's exit.
However, Madrid boss Carlo Ancelotti may rue letting Di Maria go as he is so clearly a vital cog in Real's blistering attacking machine.
Meanwhile, Falcao's arrival could potentially lead to the departure or disillusionment of another prize asset in Benzema.