Jose Mourinho's side look set to capture the Br azilian midfielder this summer, with the move facilitated by a debt owed by agent Wagner Ribeiro to Real president Florentino Perez.
Real Madrid will look to take advantage of a loan made to Br azilian agent Wagner Ribeiro to tie up the summer signing of midfielder Lucas Moura.
Madrid coach Jose Mourinho was in Hamburg at the weekend to watch the Sao Paulo star in action for his country in a friendly against Denmark, while also casting his eye on talented full-back Danilo.
But with a midfield partner for Xabi Alonso remaining a priority, the Portuguese coach is stepping up his efforts to sign Moura, and the player's parents have already met and dined with club president Florentino Perez.
Sao Paulo are keen to hang on to the 19-year-old for two more years, but Madrid hope to push through a deal this summer and the player's family have already started negotiations with the Santiago Bernabeu side.
Ribeiro has been a key figure in the arrival of several Br azilians in Madrid, including Kaka, Robinho and Julio Baptista. The agent formerly represented Neymar, too, and attempted to strike a deal to bring the teenage sensation to Real last year.
With Ribeiro working on behalf of the capital club and the family already won over by the offer from Spain, Madrid now need to convince Sao Paulo president Juvenal Juvencio, who only days ago revealed he had rejected a €32 million offer for the talented midfielder, thought to be from Chelsea.