D’Agostino was linked with a move to Juventus previously this summer, but the two clubs failed to agree on a transfer feee.
“I cannot deny he has the right characteristics for our team’s needs,” confessed Real Madrid director of sport Miguel Pardeza in Marca.
“D’Agostino is a concrete option and one that directors Pellegrini and Valdano are following with interest.”
Udinese director of sport Sergio Gasparin said: “The only official line on this story right now is to say no comment.”