Alaba will sign a 4-year contract with Real Madrid, with an annual salary of 11 million euros, according to the report.
The newspaper pointed out that Real Madrid was watching Villarreal defender Pau Torres and the Seville duo: Diego Carlos and Jules Conde to sign a player from them, but the management decided that Alaba was the appropriate option to strengthen the defense.
Alabas contract with Bayern Munich expires at the end of the current season and he has the right to negotiate with any team since January.
Alaba, 28, moved to Bayern Munich in 2008 from Young Violets of Austria and included in the youth teams until he was promoted to the first team in 2011 after a loan period with Hoffenheim.
Alaba scored 32 goals and scored 49 goals in 405 matches in all competitions with the first team.
Alaba won the German League 9 times in addition to the two Champions League titles with Bayern Munich.