Real Madrid plan to travel to Germany in the coming days to continue to negotiate the signing of Jude Bellingham from Borussia Dortmund, sources have told ESPN, although Manchester City still haven't given up on signing the player.
ESPN reported earlier this month that Madrid were feeling optimistic about their chances of beating City to the signing of the England international after encouraging conversations with the midfielder's entourage.
Some reports in Spain claimed that an initial agreement had been reached and that City had dropped out of the race, believing it was a lost cause.
However sources told ESPN that a deal had not yet been agreed, and the Premier League club remain in the hunt for the 19-year-old, with doubts over whether Madrid and Dortmund will be able to strike a deal.
Madrid are keen to add Bellingham to their squad to continue the renewal of their midfield, having brought in young stars Aurelien Tchouameni and Eduardo Camavinga to play alongside veterans Toni Kroos and Luka Modric in recent seasons.
Bellingham has emerged as one of the outstanding young talents in European football in his three years at Dortmund.
Madrid have become increasingly confident of landing Bellingham and believe that the player would favour a move to the Bernabeu.
The LaLiga giants do not view it as a done deal, though, as the terms of a transfer, which would total well over €100 million, are yet to be agreed with Dortmund.
The race for Bellingham has already taken a number of twists and turns, with Liverpool and City both previously viewed as favourites to sign him.
Madrid are also aware that they cannot compete with City's financial firepower, relying instead on the player's preference for a move to the Spanish capital.
Club executives plan to fly to Germany in the coming days for face-to-face talks with Dortmund in the hope of making progress on a deal.
Sources told ESPN that despite conversations with Bellingham's representatives, City have not made a formal offer to the player or his club.
City haven't given up on signing Bellingham and are ready to pounce as they believe Madrid and Dortmund may be unable to reach a compromise on a fee.
Information from ESPN's Rob Dawson was included in this report.