According to the report, Madrid will lodge official bid for Kroos, who has a contract till 2015, after the World Cup but expect tough competitions from Manchester United and Chelsea as well.
At the turn of the year, Bayern Munich had offered him a contract extension that will increase his gross salary to €4-6m, which was rejected by Kroos.
Bayern are now left with three options now. Either they can offer him a high wage package, keep him at the club and lose him on a free transfer or sell him now to the highest bidder and recoup around €20m.
Madrid are willing to offer him €5-6m per year wage package while Chelsea have offered around €8.5m per year deal.
Manchester United were also thought to be interested in him, but it seems they’ve shifted their attention elsewhere, with new manager Louis van Gaal has urged the United hierarchies to push through a deal for Bastian Schweinsteiger.