Fulham are advancing in talks with Real Madrid over a move for attacking midfielder Cesar Palacios.
Palacios, 21, is the latest Madrid academy graduate Fulham have targeted since appointing Alvaro Arbeloa as head coach this summer, with the clubs also in advanced talks over a proposed deal that would see striker Gonzalo Garcia move to the Premier League side.
As the club often does with the sale of academy products, Madrid are expected to negotiate a deal for Palacios that contains rights and clauses over any future sales. Talks with Fulham are focused on a regular deal for both Garcia and Palacios, rather than for 50 per cent of the rights to the player, a formula Madrid are accustomed to.
Sources briefed on the deal, speaking on condition of anonymity to protect relationships, have expressed confidence that both signings will be completed by Fulham, with the two young talents keen to play in the Premier League under Arbeloa, who stepped up to lead Madrid’s first team from his role as Castilla coach after Xabi Alonso’s sacking last season.
Fulham are also targeting a move for striker Garcia (Angel Martinez/Getty Images)
The Athletic reported in June that the failure of Madrid Castilla (effectively the club’s B team) to secure promotion to the Spanish second tier last season was likely to accelerate the departures of several academy players seeking regular senior football, with Palacios among those expected to attract interest.
Palacios made his senior debut for Madrid in January 2026 and featured seven times for the first team last season, including five times from the bench in La Liga.
Attacking midfielder Harry Wilson, Fulham’s top scorer in the Premier League last season, departed this summer following the conclusion of his contract. He has since joined Leeds United.
The Athletic revealed in June Fulham were in talks to sign Garcia, 22, with Arbeloa, regarded as his football mentor, actively involved in discussions.
New Madrid head coach Jose Mourinho likes the player but cannot guarantee him a prominent role, so has left the decision over his future up to the striker. Any deal for Garcia would be well above of €30million (£25.71m; $34.17m).
Arbeloa was appointed Marco Silva’s Fulham successor this summer. He spent 10 years at Madrid as a player across two spells, before coaching Madrid Castilla and then being placed in charge of the first team for the second half of the 2025-26 season following the sacking of Xabi Alonso.