Real Madrid are preparing an offer for Chelsea fullback Reece James.

James is unhappy with his current contract and waiting for it to be upgraded.

The Daily Mail says Real have James on their radar, as do Manchester City, knowing he's frustrated with his contract situation.

James faces a wait until September to hear from Chelsea about new contract talks.

However, new owner Todd Boehly is said to be willing to upgrade the England defender's deal once the summer market is over.