Bild says Real coach Manuel Pellegrini is keen to be reunited with the Argentina international, who he worked with while in charge of River Plate.
"Manuel and I respect eachother a lot. Years ago I once said I had to play for Real Madrid. I'd love to play with him again," said Demichelis.
"Germany has a special place in my heart because my son was born here. But life in Spain is similar to that of Argentina. The language, climate, people ... I hope someday to play in Spain, but while I have a contract with Bayern I will give 100% for this team."