Chelsea have had a bid for Spain international David Villa rejected and the Valencia striker now looks set to be the latest big-name player to sign for Real Madrid.
Real have already snapped up Kaka from AC Milan this week and have had a bid for Cristiano Ronaldo accepted by Manchester United as they attempt to revamp a side that struggled last season.
Juan Cruz Sol, who is Chelsea's scout in Spain, was quoted in Marca as saying the Blues had had an offer for Villa rejected by Valencia who are "in advanced negotiations with Real Madrid".
"He wants to join Madrid because he wants to stay in Spain and that is normal," added Cruz Sol.
"There is no chance of Villa going to Chelsea because he wants to go to Madrid."
Reports in the Spanish media suggest Real have agreed to let Alvaro Negredo, who recently returned to the Bernabeu after spending the last two seasons with Almeria, move to the Mestalla as part of the deal.
Elsewhere, Barcelona may have to start looking for a new goalkeeper after Victor Valdes' agent suggested that the shot-stopper is unhappy with the contract the club have offered him.
Valdes' current Camp Nou deal expires at the end of next season and it has been reported that he may decide to leave the Champions League winners this summer.
His agent, Gines Carvajal, told Marca: "We have presented an offer but we are very far away. This is difficult. The climate of the meeting has been right but it is not going to be easy.
"We respect the interests of the club but Victor has never come to ask for a raise before. Now, with a renewal on the table, we are asking.
"We do not have any other offers, but there is a rush to make a decision. The wish of Victor is to stay with Barcelona, but the world does not end away from Barcelona.
"He is a Barcelona goalkeeper, who has won three titles this year and has been the best in the league."
Meanwhile, veteran striker Victor has been told by Valladolid that they will not be renewing his contract this summer.
The 35-year-old has enjoyed two stints with the club, featuring in more than 300 matches and scoring 84 goals during nine seasons.
It is believed that Victor will not retire but attempt to find a new club before the new season starts.
Earlier in the week Valladolid, who only just avoided relegation last term, made Deportivo La Coruna defender Antonio Barragan their first summer signing.Reuse content