Falcao has been in red hot form this season, which has alerted several top European clubs.
The Columbian international drew more attention on Sunday when he scored five goals to share the spotlight with Barcelona’s Lionel Messi, who after scoring twice for his team, broke the record for the most goals scored in a calendar year with 86.
Atletico Madrid have warned off all pursuers and labelled his linked with other clubs as just transfer rumors.
But according to El Economista, Real Madrid president Florentino Perez watched Falcao played recently after several members of the club, including the club’s football director, urged him to take a look at the Colombian.
It is believed that Perez liked what he saw and will make arrangement to workout out a deal for the former Porto forward.
Gonzalo Higuain, from all indications is set to leave the club soon and Madrid are becoming more unsettled with the inconsistent form of Karim Benzema.
Falcao said he would welcome a move to play in the Barclays Premier League and that statement alerted Manchester City and Chelsea.
However, the current form of Fernando Torres has seen the Blues beginning to stall on their previous move for Falcao and El Confidencial says the 26-year-old has now decided to make the short move to the Santiago Bernabeu.