Arsenal may be interested in signing Danilo in the summer.
Don Balon says the Gunners see the Brazil international as a replacement for the wantaway Hector Bellerin.
Bellerin is expected to return to former club Barcelona this summer and Arsenal see Danilo as an ideal solution to fill the void.
Real are ready to sell the defender, who has struggled over his two years in Madrid, losing his first-choice battle to Castilla graduate Dani Carvajal.
Real president Florentino Perez is prepared to take a major hit on Danilo's price, with Arsenal intermediaries informed they can sign him for a knockdown €20 million.