Multiple Spanish journalists, including AS' Sergio Santos Chozas, reported the news on Thursday.
Per the report, radio show El Partidazo de Cope also confirmed the news.
Asensio spent last season on loan at Espanyol and was given the chance to make his mark in the Spanish capital after a solid pre-season. He promptly blew the expectations out of the water with a sensational start to the new campaign.
While he hasn't been an automatic starter, the 21-year-old has remained a part of the rotation at the Santiago Bernabeu. He announced himself on the world stage on Tuesday with a stunning performance off the bench against Bayern Munich in the UEFA Champions League, one that included a goal.
Here's a look at some of his highlights:
Real have invested heavily in young talent over the last few years, with top prospects like Jesus Vallejo and Martin Odegaard expected to become contributors in the near future. Asensio is the first of the bunch to break through, and Los Blancos are unlikely to sell him this early in his career.
The sky seems the limit for the Spain international, who appears set to headline a new generation of Real Madrid stars.
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