The 49-year-old is free to take up a new role but would have to waive some of the fee he is due to receive from his former employers.
Real Madrid contacted Antonio Conte on Monday as the Italian is their first choice to replace Julen Lopetegui if he fails to turn his side’s fortunes around.
The club’s directors have held initial talks with Conte to see if the former Chelsea boss would be keen on taking over the reins.
Italian publication Corriere dello Sport suggest current Real Madrid boss Lopetegui has just three games to save his job after a topsy-turvy start to life at the Santiago Bernabeu.
Real Madrid chiefs are unhappy with the manager they controversially appointed in the summer as the club are fourth in La Liga after eight games.
They have lost three of their last four games with Sevilla, CSKA Moscow and Alaves all claiming wins over Real Madrid.
The La Liga giants upset the Spanish FA by agreeing a deal with then-national team boss Lopetegui in the build up to the World Cup.
Lopetegui was sacked just two days before Spain’s opening game in Russia as he agreed a deal with Real Madrid without their permission.
And he is now just three games away from being dismissed from a role for the second time this year.
Lopetegui must now make sure his side avoid defeats against Levante, Viktoria Plzen and in the first El Clasico of the season at Barcelona.
Conte is a free agent after being let go by Chelsea in the summer but he is yet to agree a compensation deal with the west London club.
The 49-year-old is free to take up a new role but would have to waive some of the fee he is due to receive from his former employers.
