The Wales international has been the subject of transfer speculation all summer long, with it believed that the Spanish giants have tabled a world-record transfer bid for the attacker in the region of £86 million.
Tottenham chairman Daniel Levy is desperate to keep the star at White Hart Lane, and is thought to be teeing up a new £150,000 per week contract to convince Bale that his future lies in north London.
However, following Luka Modric’s switch to the Santiago Bernabeu last summer, Spurs find themselves in a similar situation in that Bale is believed to have made his desire to leave White Hart Lane clear.
Bale reported to the club's north London training centre on Wednesday to undergo treatment on a muscular injury, and it is there that he is rumoured to have made his decision known to Villas Boas.
Tottenham now face a difficult situation, as Real Madrid continue to pile pressure on them with the likes of Iker Casillas, Zinedine Zidane and Kaka openly urging Bale to move to the Spanish capital.
Meanwhile, The Guardian state that Levy may have softened his stance on Bale’s departure, given the fact the player’s ambitions of moving to Spain.
The daily newspaper also indicate that Tottenham will want a part-exchange deal involving Madrid forward Alvaro Morata should the Welsh attacker leave White Hart Lane this summer.
Morata is highly rated by Los Blancos and has been touted as a future Spain international number 9.
The 20-year-old has represented his country at youth level from under-17’s all the way through to under-21’s, and won the Golden Boot at the European under-21 championships earlier this summer.
Morata’s chances in the Madrid first-team have been fleeting, with the youngster making 14 appearances and scoring two goals in his brief senior career to date.
However, with Gonzalo Higuain leaving the club to join Napoli this summer, it is believed that new boss Carlo Ancelotti has earmarked the young star as a potential replacement and plans to use Morata on a more regular basis.
Madrid would be reluctant to let Morata go, as he is one of the brightest prospects in the Spanish game, and other players such as Luka Modric, Fabio Coentrao and Angel Di Maria have also been touted as potential makeweights.
Should Morata be included in the deal that sees Bale swap the white of Tottenham for that of Real Madrid, the collective fee would be worth more than £100 million.
As yet, Tottenham have failed to comment on the new developments.
image: © James Boyes