Fulham are advancing in talks with Real Madrid over the signing of attacking midfielder Cesar Palacios as Álvaro Arbeloa continues to target young talent from his former club.
According to The Athletic, discussions between the two clubs have progressed in recent days, with confidence growing that a deal for the 21-year-old will be completed. Palacios is expected to become the latest Real Madrid academy graduate to reunite with Arbeloa, who took charge at Craven Cottage earlier this summer.
The negotiations are running alongside Fulham’s pursuit of striker Gonzalo Garcia, with the Premier League club also in advanced talks over the 22-year-old. Rather than selling a percentage of the players’ rights – a structure Real Madrid have frequently used for academy graduates – the Spanish club are discussing conventional permanent transfers while seeking to include sell-on clauses and future rights in both deals.
Fulham close in on Real Madrid youngster Palacios
Palacios is understood to be keen on the move, viewing the opportunity to work under Arbeloa and play regular Premier League football as an attractive next step in his career. Sources cited by The Athletic believe both he and Garcia are expected to join Fulham before the transfer window closes.
The midfielder made his senior Real Madrid debut in January and featured seven times for the first team during the 2025-26 campaign, including five substitute appearances in La Liga. However, with Madrid Castilla failing to secure promotion last season, several academy players have been exploring opportunities elsewhere in search of consistent senior football.
Fulham’s interest has also been shaped by the departure of Harry Wilson, whose contract expired this summer before he joined Leeds United. Reinforcing the attacking midfield positions has become a priority, with Palacios viewed as a player capable of adding creativity and technical quality to Arbeloa’s new-look squad.
While negotiations are still ongoing, Fulham appear well placed to secure another highly rated prospect from Real Madrid as the club continues to reshape its squad ahead of the new Premier League season.
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