The Daily Star says Spurs have been desperately trying for a full 12 months to get Eriksen, 26, to sign a new contract without success.
They are now resigned to the fact that they are going to have to sell him with just over one year left on his current contract.
Eriksen has dreamed of playing for Real Madrid since he was a child and the Spanish giants are showing huge interest in the Dane.
Levy is reluctant to cash in but already has a sky-high figure in mind if his hands is forced.
The world-record fee is Neymar's £198m from Barcelona to Paris Saint-Germain.
But that will need to be topped with Tottenham only willing to accept £200m for their playmaker.