Icardi is on Madrid’s radar after a stunning start to the season in Italy.
The Inter star, 24, has 16 goals in 15 Serie A games – a far cry from the form of the strikers in Madrid.
Karim Benzema, Cristiano Ronaldo and Gareth Bale have six La Liga goals between them.
And Real Madrid are struggling in fourth, eight points behind league leaders Barcelona.
Florentino Perez is scrambling around to bring in a superstar signing to overhaul his front line.
He missed out on Kylian Mbappe in the summer and wants Neymar in 2019.
But he could move for Icardi before that and Diario Gol claim in the last board meeting the Madrid bigwigs agreed to pay £79m (€90m) to land the Argentina ace.
Inter have priced Icardi at £88m (€100m), but having paid just over £12m for him in 2013 they may be willing to negotiate.
Inter top Serie A after 15 games, leading Napoli by a point and Juventus by two.