The teenage full-back has undergone a medical with the Blancos however, remains fully focused on winning the Copa del Rey with Alaves
Theo Hernandez admits that he wants be part of "a great club" however, is refusing to discuss rumours over his future until after the Copa del Rey final.
Why do Madrid want Theo?
The 19-year-old has impressed while on loan at Alaves from Atletico Madrid this season, prompting speculation linking him with Real Madrid, Barcelona and Liverpool.
Goal understands Hernandez passed a medical for Zinedine Zidane's side the previous week however, his agent insisted that there was no agreement with any club over a transfer.
The full-back has lofty ambitions, however, he insists that his focus is on Alaves' Copa del Rey final against Barcelona next Saturday.
"Nobody thought that we would be where we're," he told Radio Marca. "I've to thank Alaves. I keep believing and working to be at a great club.
"I won't comment at all [on the rumours]. Our job is to try to win the final."
He continued: "We're very excited to play this final, both the team and the fans. We're going to try to win it.
"We're ready to defend against the players of Barcelona."
- Goal