Fulham have entered direct club-to-club talks with Real Madrid over a deal to sign attacking midfielder Cesar Palacios this summer transfer window.
New Fulham manager Alvaro Arbeloa is personally pushing for the move, eyeing a reunion with a player he previously managed during his time at Madrid.
Transfer insider Fabrizio Romano confirmed the talks are now ongoing, with Real Madrid still needing to give the green light before any deal can progress further.
Palacios has made just seven senior appearances for Real Madrid, but has been a standout performer for their reserve side RM Castilla in the Primera Federacion.
Across 77 appearances for Castilla, the 21-year-old registered an impressive tally of 19 goals and six assists, highlighting his creativity and attacking output at that level.
Last season alone, Palacios found the net 14 times and provided four assists for Castilla, underlining his potential as a genuine attacking threat in senior football.
Scout Jacek Kulig has previously praised Palacios for an “excellent” performance while representing the Spain U19 side in a match against Greece U19s.
Despite those promising displays, Palacios managed just 81 minutes of La Liga football last season, making a move to the Premier League an increasingly attractive proposition.
Arbeloa is also understood to be interested in fellow Real Madrid player Gonzalo Garcia, who scored six La Liga goals for the Spanish giants last season, though Garcia could stay at the Santiago Bernabeu pending a decision from Jose Mourinho.
Fulham scored just 47 Premier League goals last season, with only Sunderland among the top 13 finishing clubs managing fewer, making attacking reinforcements a clear priority for the club.
The Cottagers are also serious contenders to sign Juventus striker Lois Openda, and are believed to be capable of offering a more attractive financial package than rival suitors Lyon in that pursuit.
Backing Arbeloa with a player he knows well could prove a smart move, as the 43-year-old manager is expected to understand exactly how to get the best out of Palacios at senior level.