Officials from the Spanish giants have travelled to Brazil to discuss the transfer and a deal could be confirmed after the Copa America.
Chelsea have been tracking Neymar for some time but the 19-year-old Brazil forward appears to be heading to the Bernabeu.
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Santos want to keep Neymar for at least another year on loan and are hoping the player will insist on it. Neymar at least wants to stay for the Club World Cup so a move before January is unlikely.
Chelsea are expected to weigh in with a counter-offer but Real remain confident of getting their man. Madrid vice-president Fernando Tapias was reported to be in Brazil but Neymar's agent, Wagner Ribeiro, remained tight-lipped, saying: 'I do not want to comment on that.'
Real are banking on their relationship with former striker Ronaldo to help the deal along. The World Cup winner's company '9ine' has a contract with Neymar to help him find sponsors.
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Source: Daily Mail
Source: Daily Mail