According to Spanish radio station Onda Madrid's El Partido de la Una (h/t Sport Witness' Tom Coast), the Belgian has a "full agreement" with Los Blancos, though they aren't willing to pay Chelsea's €170 million (£151 million). The report also noted the Blues have yet to agree to the deal.
Hazard is only contracted at Stamford Bridge until 2020, and Real don't want to pay such a fee for a player who will be in the final year of his deal come the summer.
It's said they're prepared to use Mateo Kovacic—who is already on loan with the Blues—as a makeweight, or Marco Asensio if the Croatian is not enticing enough.
AS' Robbie Dunne noted the interesting timing of the report:
Real have moved away from their model of signing Galactico players in recent years—the last player they bought who could fit that description was Gareth Bale in 2013—but they have room for a marquee talent to come in after they sold Cristiano Ronaldo to Juventus last summer.
Hazard would not be able to replace Ronaldo's goals—his best tally in all competitions for Chelsea is 19—but he's a supremely talented player who could give them a spark in the final third.
The 27-year-old has flirted heavily with Los Blancos at times during his Chelsea career, too:
Football writer Mark Worrall doesn't feel Kovacic is a worthwhile makeweight, however:
He may feel differently about Asensio, though. The Spaniard isn't yet at Hazard's level, but he's one of Real's most valuable assets now that Ronaldo is gone.
Five years the Belgian winger's junior, Asensio is an incisive, impactful and exciting player who could reach some incredible heights in the game if he fulfils his potential.
His inclusion would make losing Hazard somewhat more palatable for the Blues, who may have little hope of keeping him if he does indeed have an agreement with Real in place.