Sergej Milinkovic-Savic's agent, Mateja Kezman has allegedly indicated that Real Madrid are set to pay €155m (£137.11m) for the player.
The Lazio midfielder has emerged as one of the most sought-after players in Europe, with Man United having in the past been linked with the 23-year-old.
The Serbia international has maintained that he is content with life at his present club but according to Corriere dello Sport, Real are prepared to spend big on him this summer.
The report hints that Kezman has told Lazio that Real have decided to lodge an approach for the player with the Spanish giants eager to open talks.
The funds possibly will be raised from Cristiano Ronaldo's impending switch to Juventus and the sale of midfielder Mateo Kovacic.
Milinkovic-Savic still has four years left on his Lazio deal.
This article was most recently revised and updated 3 years ago