Los Blancos are keen on taking on Hernandez permanently.
Having impressed so far during his loan spell Real Madrid have already decided to take up the option to sign Javier Hernandez from Manchester United on a permanent deal, reports CaughtOffside.
Top 10 highest spending clubs of the last 10 years.
Manchester United v Chelsea live streaming guide and Premier League preview.
Real Madrid v Barcelona live streaming guide and El Clasico preview.
The Mexico international completed a season-loan loan switch to the Estadio Santiago Bernabeu over the summer and has since scored three goals in six appearances in all competitions for the Spanish giants.
Madrid head coach Carlo Ancelotti has the option to make Hernandez’s move to the Spanish capital permanent and has already decided he wants to activate that – but not for the price the Red Devils are demanding.
United want Los Blancos to pay £17m for the services of the striker known as ‘Chicharito’, but Ancelotti feels that an offer nearer to £12m would be much more suitable.
READ MORE: Manchester United transfer news.