The classy playmaker is believed to be attracting significant interest from across Europe as his contract with the Premier League champions runs down, though the aforementioned source insists that Madrid remain in pole position for his signature.
It is thought that 'Los Blancos' will make their move in Janaury, though it remains to be seen if it will be with a view to the starlet joining up with them at the turn of the year or the end of the season.
However, the reigning European champions are unlikely to have things all their own way in their attempts to sign the Málaga-born star, with PSG now believed to have joined the race for his signature.
Nevertheless, at this point Brahim is believed to be favouring a move to the Bernabeu, with his plan for the moment being to let his contract at City expire at the end of the season and make the return to his homeland.
According to 'AS', though, the player's representatives are keen for him not to dismiss rival interest and believe he should listen to all the offers that come his way, including City's before coming to a decision.
With the main interest in Brahim being from Europe and his contract due to expire at the end of the season interested parties will be able to discuss a pre-contract deal with the 19-year-old in January, with PSG and Real Madrid the two sides to have shown their hand so far.