The 34-year-old struck the winning penalty in Chelsea’s Champions League triumph over Bayern Munich 10 days ago but is due to leave the club in June at the expiration of his contract.
It was expected that Drogba would link up with former teammate Nicolas Anelka in China at Shanghai Shenhua but reports are indicating that he is now on the verge of signing for Madrid after he had second thoughts about moving to the Far East.
Rumours of and dressing room conflict and that Anelka, who is currently caretaker player-boss, could be replaced by Argentine coach Sergio Batista has put the him off joining the Chinese side.
Drogba is now expected to reunite with Mourinho in Spain four years since the Portuguese coach left Stamford Bridge after owner Roman Abramovich sacked him.
It was the 49-year-old that brought him to West London in 2004 and the pair went onto win two Premier League titles before the self titled ‘Special One’ departed early in the 2007/08 season.
Mourinho wanted to bring the Ivory Coast international to Los Blancos last year only for the move to break down due to Abramovich placing a hefty price tag on his head.
But with Drogba now a free agent after deciding not renew his contract at Chelsea the former Blues boss is keen to bring him to the Bernabeu as he chases success in the Champions League.
Talks between representatives of both parties have already taken place and speculation has grown that the striker will be offered a two-year deal to ward off interest from Spain, Italy, Germany and Russia.
With Karim Benzema and Gonzalo Higuain to contend with it’s likely Drogba will have to be content with a place on the bench should he sign.