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Los Blancos manager Zinedine Zidane wants to sell midfielder Isco in the summer, according to Spanish newspaper AS.
And Liverpool and Arsenal has joined the race with Manchester City, Juventus and Bayern Munich as a potential destinations by the Spanish press.
The North London club off-loaded Alexis Sanchez to Manchester United in January and brought in Pierre-Emerick Aubameyang.
However, AS claim the Gunners are short in midfield with only Mesut Ozil and Henrikh Mkhitaryan as creative talents.
Jack Wilshere’s contract is also up at the end of the season which could open a space for Isco.