The England defender is running down his contract this season after having a deadline day move to Liverpool blocked by Palace.
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Guehi has also been linked with Bayern Munich and former club Chelsea, while Liverpool are expected to try again in January. Barcelona have also expressed tentative interest.
However, Sky Deutschland's Florian Plettenberg is reporting Guehi now favours a move to Spain and Real Madrid.
And he is prepared to wait for the Spanish giants until next summer and then make the move as a free agent.