Marca says Capello could make a shock return to Real Madrid as the Spanish giants begin preparations to replace Manuel Pellegrini this summer.
Under pressure Pellegrini, who was not Perez's choice for the manager's job when he arrived from Villarreal nine months ago, knows he faces an uncertain future even if he does win the title this season. The club infamously sacked Capello under identical terms during his second spell in charge at the club.
Despite winning the championship in 2007, the club's early European demise that term signaled the end of the Italian's reign before he accepted the England job later that year in December. German Bernd Schuster suffered a similar fate in 2008.