According to Francesc Aguilar of Mundo Deportivo (h/t The Sun's Toby Gannon), Los Blancos have ended their transfer negotiations for not only Hazard, but also Edinson Cavani and Pierre-Emerick Aubameyang until they know how much Dybala would cost them.
The Belgian was injured during the summer but has returned to action for Chelsea this month, appearing in each of their five matches across all competitions in September.
Per the Blues' official Twitter account, he could be set to start against Atletico Madrid in the UEFA Champions League on Wednesday:
The 26-year-old has largely been limited to cameos thus far, but he did play a full 90 minutes against Nottingham Forest in the Carabao Cup.
Chelsea looked at his best bits as he set up Michy Batshuayi twice in the 5-1 win:
While it's not too surprising Hazard was able to outclass the Championship opponents, he's more than capable of doing the same in the Premier League and Europe.
The winger has pace and technique in abundance, and he's used them to produce 72 goals and 64 assists during his time at Stamford Bridge.
Squawka Football demonstrated his superlative dribbling:
There's still scope for Hazard to improve even more, and the Blues will be pleased if Real have turned their attention elsewhere.
Dybala, 23, has plundered 12 goals from eight matches this season, and like Hazard, he fits Real's "Galactico" mould.
Chelsea are reportedly attempting to tie Hazard down to a new deal, and "there is encouragement from both sides that the forward will sign an extension," according to Matt Law of the Daily Telegraph.
With Los Blancos distracted, they would do well to secure his signature quickly before his performances catch Real's eye once again.