With Mateo Kovacic having left for Chelsea on a loan deal, and another Croatian in Luka Modric also looking to leave, Real Madrid could well need midfield reinforcements.
Spanish radio station Onda Cero say that Real have singled out Thiago, who is thought to be keen on a move back to Spain after leaving boyhood club Barcelona in 2013.
Thiago, 27, played under Julen Lopetegui for Spain and it is believed he could be prised from Bayern Munich for an offer in the region of €50 million.
New keeper Thibaut Courtois was the only bit of transfer business that Los Blancos intended to do this summer, but Golden Ball winner Modric is still angling for a move to Inter Milan.
