Real Madrid are set to allocate €100 million (US$112.8 million) of the budget for their stadium redevelopment to Telefónica in an attempt to digitally transform the Santiago Bernabeu, reports, www.sportspromedia.com/.

According to Palco23, the new contract between Real and Telefónica would make the Spanish telecommunications giant one of the La Liga side's biggest sponsors. Telefónica previously had a deal with the club for part of the 2016/17 season and the duration of the 2017/18 campaign, but opted not to extend that partnership when it expired.

It is not yet known whether the new contract will be an upgrade on the previous arrangement between the two parties, although Palco23 says that deal saw Telefónica pay Real €15 million over the period from March 2017 to June 2018.

"It is a contract that goes far beyond the simple economic consideration for advertising, it is going to be a key alliance in the digital transformation of the stadium," a source told Palco23.

In terms of the Bernabeu's digital transformation, Real want absolute connectivity at the 81,044-seater stadium, including free Wi-Fi access for all spectators.

The club's 2017/18 annual report also outlined a desire to equip the venue with a 360-degree video scoreboard, as well as the latest advances in digital technology and the application of audiovisual media in various parts of the stadium.

Real president Florentino Perez has said that the estimated cost of Real's stadium project is €525 million (US$592 million) and revealed in the last assembly of club partners that around €100 million of that would be spent on technology and innovation.