Carlo Ancelotti reportedly has funds to spend after Angel Di Maria and Xabi Alonso left the Bernabeu in recent days, jetting off to Manchester United and Bayern Munich, respectively.
BBC Sport confirmed that German champions Bayern had wrapped up the signing of Alonso on Friday, and Ancelotti's main focus now appears to be a striker, with Radamel Falcao once again closely linked with the European champions.
Karim Benzema signed a five-year extension with Real earlier this summer, but in a bid to build on last season's triumphs, the club will look to deepen their reserves up front.
Falcao has been linked with a move to the Spanish capital for much of this summer, and it's now apparent he could yet leave Monaco this summer. ESPN FC's Miguel Delaney writes that Los Merengues are among the major clubs interested in a move.
Manchester City have also been associated with a €20 million season-long loan for the Colombian, but Spanish expert Graham Hunter says the Citizens are no longer in the running:
According to talkSPORT, Falcao's agent Jorge Mendes is in the process of finding a new destination for his sought-after client, holding talks with some of the continent's elite in recent days.
Real are thought to be among that list, but Arsenal could pose competition after Metro's Jamie Sanderson quoted Arsene Wenger in refusing to rule out a move of his own: "It is very difficult. All negotiations have to be discussed secretly. If something happens, you will of course be informed."
Los Blancos have a unique pulling power, and should they be willing to fork out the necessary funds, the allure of the Bernabeu could see Ancelotti's side yet win the race they've been a part of for some months now.
Manuel Pellegrini is confident of fending off any late interest in striker Alvaro Negredo, insisting that the striker will remain at the Etihad Stadium with rumours of a Real Madrid switch swirling.
For the moment there is no news about that, for Negredo or anybody. We are not receiving any offers for any players. At this moment he is part of our squad and we are not trying to sell him and nobody has given an important offer.
Maybe one month ago some Spanish clubs had an interest in him but that was one month ago. At this moment Alvaro is injured but part of our squad. Last year he did very well and then had an injury with his shoulder and after that he didn’t play so well but he’s always an important player for us. We don’t want to sell him. We want him to stay with us.
Negredo is currently attempting to make his comeback from injury, and the official Manchester City Twitter account confirmed he would miss this weekend's Premier League meeting with Stoke City:
With Stevan Jovetic in flying form and Edin Dzeko already competing alongside Sergio Aguero for a place up front, the attacking depth at the Etihad is currently of an incredible quality.
However, it would seem the club's manager is hoping to keep it that way, evidently eager to ensure Negredo remains among his ranks for the season to come.