Currently away with Brazil for the 2026 World Cup, the 19-year-old spent the second half of last season on loan at Lyon due to limited chances at Real Madrid.
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Endrick impressed during his time in France, scoring eight goals in 21 games, including the opener in their 2-1 win over eventual champions PSG.
According to Marca, Real Madrid and Mourinho have decided to keep Endrick for the coming season, despite speculation to the contrary.
Instead, Real Madrid believe now is the time for the forward to establish himself at the club, with Endrick agreeing with the decision.