Alvaro Morata, the 18-year-old striker is touted as the next big thing in Madrid, having made his debut for the club last December as a substitute in the 3-1 over Real Zaragoza.
He has scored 12 goals for Real Madrid B this season and notched his first career hat-trick in a 7-1 victory over Deportivo B in February.
According to the Daily Mirror, Blues owner Roman Abramovich has been impressed by what he has seen and could launch a £10million bid, which is believed to be the player's buy-out clause.
However, it remains to be seen if Madrid are willing to forego their young talent, whose contract at the Santiago Bernabeu lasts till June 2013.
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