Manchester United have been long-term admirers of Milinkovic-Savic but now Real look set hijack a potential move.
Manchester United are reportedly interested in signing him, but are unwilling to pay the high fee being sought by Lazio.
With Real Madrid prepared to offer more money, Savic could well be on his way to the Los Blancos. A final day defeat at the hands of Inter Milan also made sure that Lazio will not be featuring in the Champions League next season, thus diminishing the club's pull even further. Manchester United have always been keeping tabs on his situation but the Red Devils now face competition from 13-time European Champions Real Madrid.
The 23-year-old Serbia global is reportedly on the radars of both Manchester United and Juventus, but it appears as though Real find themselves at the front of the queue with a deal that could see Lazio receive around £17m in performance-related bonuses.
The player, however, will be deciding his future only after getting done with Serbia's campaign at this year's World Cup.
Sergej Milinkovic-Savic has finally broken his silence on speculation linking him with a move to Manchester United.
Florentino Perez is set to make some big changes to the Real Madrid squad this summer, with the squad set to be overhauled.