The Spanish giants want the England manager to take over for a third time.
And a Capello source told The Sun: "What happens after the World Cup finals?
"Who knows? Anything can happen in football. Fabio is aware of the story but he is concentrating only on the World Cup finals and his work with England.
"He has worked hard for two years to get the national team to this stage and nothing will distract him from the goal of winning the World Cup.
"Real can make all the noises they like but he will not listen while his work with England is ongoing."