Tuttomercato reports that the Dutch side are looking to bolster their midfield this summer and are keen to sign Gago.
PSV sold Ibrahim Afellay to Barcelona in January and are keen to bring in a replacement for the midfield this summer.
The 25-year-old has fallen down the pecking order at Real Madrid and has long been linked with a move away form the club.
What is your opinion? Feel free to discuss the article under. You have to comment by using your Facebook profile. Be fair and have respect for other people and opinions!
Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.