Sanchez came within hours of leaving Arsenal for Manchester City on transfer deadline day last month.
However, the Gunners’ failure to land Monaco winger Thomas Lemar as his replacement ultimately saw the Chile international stay put.
Yet with less than a year remaining on his current contract, Sanchez is still expected to leave either for a cut-price fee in January or for nothing at the end of the season.
And Spanish outlet Don Balon claims the 28-year-old is now leaning towards a move to the Bernabeu rather than the Etihad.
Sanchez was particularly keen on a move from Arsenal to City for two reasons.
The first was that, with Paris Saint-Germain focusing on Neymar and Kylian Mbappe, they were among the only clubs seriously pursuing his signature.
And the second was the prospect of being reunited with Pep Guardiola, who managed the player while at Barcelona.
But Don Balon say Real’s proposition is now tempting the player more.
President Florentino Perez will supposedly approach the Arsenal star about a transfer in the New Year.
And Sanchez has every intention of accepting their offer.
He is reportedly even willing to take a pay cut to move to the current La Liga and Champions League holders.
Sanchez knows Arsenal are hellbent on keeping him but would rather flog him abroad than to a direct rival.
Though the report does not specify, Sanchez could actually replace Gareth Bale.
The Wales international continues to toil, and is below the likes of Marco Asensio and Isco in many supporters’ pecking orders.
That could lead to a move away – either this year or next summer – with Manchester United particularly keen.