El Confidencial says Real have already opened talks with Cole's agent, Jonathan Barnett, about a Bosman move to Madrid in the summer.
Cole's deal with Chelsea expires in June and he's yet to hear about new terms.
Despite being 33, the left-back is highly regarded by Real coach Carlo Ancelotti, who worked with him at Chelsea.
Real have tabled an initial two-year contract to Barnett for Cole's consideration worth €8 million.
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