Tom Collomosse and Tom Doyle of the London Evening Standard reported Los Blancos are shopping the player to a number of teams because he has failed to hold down a starting place in the Spanish capital. Spurs are said to be interested in the 23-year-old, but his wages could put off the north London club.
Kovacic joined the UEFA Champions League holders in August 2015 after impressing for Inter Milan in Serie A. The Croatia international was viewed as a major star of the future, but he has failed to convince manager Zinedine Zidane he is anything more than a squad player.
Spanish outlet Diario Madridista (h/t Liam Spence of the Daily Express) recently reported Manchester United also wanted the talent. United would have no such issue with his wages because of their robust financial situation.
Kovacic started 19 games in La Liga last season, scoring one goal and providing three assists, per WhoScored.com.
Andrew Gaffney of Yahoo Sport UK previously highlighted the burgeoning player:
In other Spurs news, manager Mauricio Pochettino will not sell Eric Dier for any fee because he wishes to retain his services.
Simon Jones of MailOnline reported Spurs will not do business with any interested sides, with Manchester United said to be reviewing the player's situation. United are reported to have inquired about the 23-year-old at the end of last season but their advances were dismissed out of hand.
Dier is developing into a key player for England, and at 23, his best is yet to come in the shirt of the Lilywhites.
Tottenham have aspirations to win the Premier League title, and selling Dier would send out the opposite message.
Formerly a defender, Dier has become a midfield enforcer in recent times, and he looks set to continue to protect Pochettino's back line against the most physical teams in England for some time.