The Spaniards are out in the market looking for a new striker after Ruud Van Nistelrooy was ruled out for the rest of the season with a knee ligament injury.
“One thing is certain – there is interest from Real Madrid,” Fernando Hidalgo told Spanish newspaper As.
“For now I cannot say anything more.”
The Argentine is available for the Champions League, something that would make him more valuable than some of their other targets.
Both Juventus ace Amauri and Manchester United striker Carlos Tevez, who has been linked with Real, are cup-tied.