Madrid head into the new season with an element of uncertainty, having lost both Zidane and Cristiano Ronaldo, - the latter having left for Juventus earlier this month.
The report claims that the Blues are trying their best to keep hold of the 27-year-old who had an excellent World Cup with Belgium.
Chelsea boss, Maurizio Sarri is desperate to keep Hazard. Since then, they have been reported to be in the market for a new Galactico as they look to compensate for the Portuguese's exit, as far as tangible contribution is concerned.
Tottenham manager Mauricio Pochettino has played down rumours of a move to bring Real Madrid ace Gareth Bale back to the club. But, the report by AS suggests that Los Blancos may have backed out of their pursuit of the Chelsea superstar.
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The La Liga giants have been relentlessly pursuing Courtois this summer, with the Belgian goalkeeper keen to return to the Spanish capital and Chelsea resigned to losing him.
Julen Lopetegui is keen to build his side around Gareth Bale following Cristiano Ronaldo's exit and views Willian as the ideal foil to the Welshman, who will be given a free role.
But according to the Daily Mail, Madrid are now the front-runners as they line up a sensational swoop for the World Cup star. What also seems to have worked in the Blues' favour is the fact that they have the final call in a potential sale of the player.
Real Madrid are reportedly hesitant to part with up to £200m to secure Hazard's signature when they can promote from within and hand a decisive role to Isco, who has been waiting for his chance to star for the team since arriving in 2013 - per AS. Several marquee players were earmarked by Real Madrid but all of them resulted in major failures.