Salah has shot to the top of Madrid's wanted list following a remarkable season which has seen him score a record-breaking 32 Premier League goals and 44 across all competitions, helping the Reds to the Champions League final, where they will face Madrid.
The Egyptian's form has earned him the PFA and FWA Player of the Year awards, and Don Balon claims that Los Blancos are now readying a blockbuster player-plus-cash offer.
Madrid president Florentino Perez is reportedly willing to offer Bale - whom the club value at around €90m (£79m) - in addition to around £50m extra in order to land Salah.
However, Liverpool have previously rejected the idea of selling the 25-year-old for any price, and it is thought that it would take an offer of £200m - equalling the record set by Neymar's move to Paris Saint-Germain last summer - to even bring the club to the table.
Liverpool and Real Madrid will go head to head in the Champions League final in Kiev on May 26.