The Bundesliga side have already opened discussions with the player’s representatives and believe the Germans could offer the ideal environment for Garcia’s development.
Despite the growing interest, negotiations remain difficult due to LaLiga side’s €60 million valuation of the 22-year-old forward, whose contract runs until 2030.
Dortmund are reluctant to meet such a fee for a player still establishing himself at the top level and are instead exploring alternative solutions.
Reports suggest Real Madrid have proposed several options, including a season-long loan or a reduced-fee permanent transfer worth around €20 million that would include a buy-back clause and a significant sell-on percentage.
Dortmund are now weighing whether a compromise can be reached without stretching their financial limits too far.