Madrid are confident they can land the Belgian international and that he would cost significantly less than either Neymar or Mbappe, according to the Evening Standard's Simon Johnson.
Johnson believes PSG would demand at least £200 million for Neymar or Mbappe - excluding their exorbitant salaries.
A looming transfer ban for Chelsea is expected to play a role in Hazard's decision whether to stay in west London. And with just a year remaining on his contract, the Blues face losing the 28-year-old on a free transfer in 2020.
Chelsea are reportedly prepared to pay Hazard more than £300,000 a week - a deal that would make him one of the Premier League's highest earners - but talks appear to have stalled.
Hazard told French radio that he's already made his decision, prompting rumors that he's set to depart in the summer. He also admitted that a move to the Santiago Bernabeu would be a "dream."
Madrid president Florentino Perez is apparently planning to revamp the squad this summer. Perez last made one of his traditional Galactico signings in 2014, when he plucked World Cup star James Rodriguez from AS Monaco for a reported €75 million.