Real Madrid have reached a verbal agreement with JJ Gabriel and his representatives, with the Spanish giants now expecting to complete a deal for the Manchester United forward.
The 16-year-old, who remains registered with United, walked out of Old Trafford in September and has not returned since.
He has instead been training independently in Spain as he seeks opportunities for senior football elsewhere.
The two clubs have not yet had formal discussions, but Real are confident they will beat rival suitors to secure the highly rated teenager’s signature, according to the BBC.
Gabriel’s credentials mark him out as one of the most exciting young talents in European football.
He netted a hat-trick on his first appearance in the Uefa Youth League and was awarded the Premier League’s under-18 player of the season last term at the age of 14.
During the summer, he featured for United against Atletico Madrid on their pre-season tour.
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Expectations at Old Trafford were that he would make history as the club’s youngest-ever debutant in September’s Carabao Cup fixture against Brighton, before his sudden departure from the club.
Both Barcelona and Paris Saint-Germain were among the European clubs alerted by Gabriel’s availability, but Real now appear to have won that battle.
A key factor easing a potential move abroad is that the youngster has obtained an EU passport, which should simplify signing for a club outside England.
Manchester United would be entitled to a compensation fee if Gabriel departs, though it would be significantly less than a transfer to a fellow Premier League side.
Former United midfielder and under-18s coach Darren Fletcher previously said he “couldn’t speak highly enough” of the youngster.
Fletcher said: “He’s got an amazing family and amazing support around him.
“He’s somebody we’re delighted to have at the club. There’s a lot of noise around him and deservedly so because he’s a real talented kid.”
United head coach Michael Carrick, speaking after the Carabao Cup loss to Brighton, urged caution surrounding the youngster.
He said: “We’ve got to be really careful of the whole situation. From a club point of view, looking after our younger players – their welfare, their wellbeing, their exposure – we’ve got to be really conscious of that in this situation.”
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