This is not the first time that rumours arise about the interest of Real Madrid for Martinez. Seasons back it was said that President Florentino Perez asked about the possibility in a Directives lunch between Clubs. But the relations between both Clubs has undergone a "rough patch" since then especially after Real Madrid said no to the final of the Spanish Cup being played this year at the "Santiago Bernabeu" (home of Real Madrid). All this & the continued historical "political differences" makes things just that bit more complex in any negotiation process between Real Madrid & Atletic Club.
The adavantage that the Madrid Club has, said by media, is that Javi Martinez has given his OK to the move from Bilbao, & Real Madrid has asked the player to "force" things locally to smooth the path. Bilbao says that the release clause is 40€ plus taxes which is 55M€, a price that for the moment creates a significant wall.
Stay tuned in coming months.