Sporting director Pedrag Mijatovic has promised the Bernabeu faithful that the club will invest in two young talents.
"We need new faces in our attack and you want to bring in two young strikers for the future. We no longer want to sign 30-year-olds who will have no long-term commitment to this club," he said.
However, Hibs boss Mixu Paatelainen poured cold water over any talk of a move for Fletcher: "Steven is progressing well and has a long-term contract. When the time is right for him to move forward, we will help him do that."