The 20-year-old is considered the next big thing from Brazil following his rapid rise to prominence.
Leonardo turned heads with his impressive performances at the U20 World Cup earlier this year, bagging five goals despite La Selecao bowing out of the tournament in the quarter-finals.
The Santos youth product has been in imperious form at the club level, bagging 21 goals and four assists across all competitions.
Serie A giants AS Roma pursued Leonardo last summer and presented an offer worth €10 million plus €8m in bonuses, but Santos insisted on a higher fixed fee.
Premier League giants Newcastle United are also tracking the Brazilian prodigy, and now Madrid have also thrown their hat in the ring.
Los Blancos have been in continuous contact with Leonardo’s agent Fernando Brito, although they haven’t made a formal offer. Brito was present at the Santiago Bernabeu last night.
Leonardo’s contract expires in 2026, and Santos are demanding around €15 million plus add-ons to part ways with him.
Both Madrid and Newcastle plan to submit their offers after the conclusion of the Brazilian Championship at the end of the year.
Los Blancos are looking to continue their tradition of snapping up the best young talents in Brazil, having brought in Vinicius Junior, Rodrygo Goes and Eder Militao in recent years.
They are also set to welcome Endrick Felipe next year, with the Palmeiras’ teenage sensation recently receiving his maiden call-up to the Brazilian senior team aged 17.
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