The Chelsea star has been linked with a move to the Bernabeu in recent months.
Hazard, 26, was reportedly one of Real’s top targets before breaking his ankle while on international duty in the summer.
And according to the Daily Express, Chelsea risk losing their key man.
They say Real boss Zinedine Zidane has made the Belgium international his No.1 summer target.
The Express add that Chelsea wanted to hand Hazard a new contract worth £300,000-a-week to stay at Stamford Bridge.
However, talks have stalled and Real are ready to pounce and sign the winger.
Real president Florentino Perez is ready to break the bank for Hazard and has sanctioned the move.
Speaking about Real earlier this week, Hazard said: "Everyone knows the respect I have for Zidane as a player, but also as a manager. He was my idol.
"I do not know what will happen in my career in the future. However, for sure, to play under Zidane would be a dream.
I am enjoying life at Chelsea. I still have a lot of things to achieve with them. I am focused on playing for Chelsea.
"Of course [I would enjoy working with Mourinho again]. I like facing him also as an opponent.
"If we were to work together in the future it would be with pleasure."
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