The Sun reports that the 23-year-old Mexican striker is a shock £30million target for the Spanish side.

United boss Sir Alex Ferguson is desperate to keep the highly-rated striker at Old Trafford and is ready to hand him a new and improved contract.

United want Hernandez to sign a new five-year contract that could see his wages increase from £25,000 to £75,000-a-week.

Real Madrid are reportedly prepared to double that again. Hernandez joined United in a £6million deal from Chivas just 18 months ago.