The Sun reports that talks between Lukaky’s agent Mino Raiola and Madrid representatives are already taking place.
Lukaku is on the top of several of Europe’s top clubs after scoring 25 goals in 37 games for Everton this season.
The 22-year-old is reportedly keen on Champions League football for next season and would be interested in leaving the Toffees.
Reports claim Everton will resist offers for the striker, but they could be tempted to sell for around £60million.