According to Sky in Germany (h/t Sky Sports), the burgeoning talent will complete a £52.4 million (€60 million) switch to the Spanish giants.
The Serbian striker will reportedly earn £8.7 million per year during a five-year deal with Los Blancos.
The capture of Jovic would represent the start of the rebuilding process under coach Zinedine Zidane after his return to the Spanish capital.
Madrid finally lost their grip on the UEFA Champions League trophy last term after three straight victories, but their form in La Liga collapsed, triggering the reappointment of Zidane.
Bleacher Report’s Dean Jones tweeted his thoughts on the potential signing:
Dean Jones @ DeanJonesBR
Left foot, right foot, headers, tap-ins, volleys…Luka Jovic has got it all. Madrid are wise to close a deal for him quickly. €60m should prove to be a great deal.
Real have failed to replace Cristiano Ronaldo’s scoring prowess since his departure 12 months ago. Jovic would help address the balance in the starting XI after a miserable campaign for the Spanish side.
The 21-year-old scored 27 goals in the Bundesliga and Europe last season as Frankfurt battled to the semi-final of the UEFA Europa League before their elimination against Chelsea.
Jovic can feature as a No. 9 or No. 10 and could provide Zidane a cornerstone in the attack for years.