Silva, 31, will officially become a free agent once his Manchester City contract expires on July 1st, ending his nine-year spell with the Premier League side.
The Portugal international, currently away at the 2026 World Cup, had plenty of options heading into the summer and remains one of the best players in the world.
According to Fabrizio Romano, Real Madrid have beaten off the likes of Barcelona and Atletico to secure the playmaker.
Silva has agreed personal terms with Jose Mourinho’s side and will put pen to paper on a two-year deal with an option for a third.