Real Madrid are reportedly not ready to give up hope of signing Chelsea defender Reece James.

The right-back has encountered numerous injury issues over the past 15 months, resulting in Chelsea having to frequently try different alternatives in that area of the pitch.

Nevertheless, James remains as a key player at Stamford Bridge, contributing 11 goals and 20 assists since being promoted into the first team in 2019.

Such is James's importance at the West Londoners that the club's owners handed James a contract until 2028 in the months after their arrival.

However, it has been well-documented that Chelsea will have to make player sales later in 2023 in order to boost their position with FFP regulations.

The Blues hierarchy are particularly open to cashing in on an academy graduate, aware that it will go down as pure profit in the books with no fee having been paid for their signature.

James's name has barely been mentioned to meet that requirement, the likes of Conor Gallagher, Ruben Loftus-Cheek and Mason Mount all looking more likely to exit the club.

According to AS, though, Real have retained an interest in signing James during one of the upcoming transfer windows.

Los Blancos are in a position where they require long-term alternatives to the likes of Dani Carvajal and Lucas Vazquez, who are both 31 years of age.

While Eder Militao is capable of deputising at right-back when required, the Brazil international is more suited to featuring at centre-back.

Given James's recent contract extension, there is an acknowledgment that it will prove to be a difficult task to tempt Chelsea into selling a player of the England international's standing.

Nevertheless, Real believe that the situation has the potential to change if Chelsea do not qualify for the Champions League and have to ensure that they meet Premier League rules.

Earlier this week, it was revealed that Chelsea made a £121m loss for 2021-22, before they committed to an outlay of in excess of £600m over the last two transfer windows.