There has been growing uncertainty over Falcao's future after his former coach Andre Villas-Boas took over the reins at Barclays Premier League outfit Chelsea.
It has been suggested that Villas-Boas is keen on bringing a number of his former charges along with him to Stamford Bridge, akin to the way ex-Chelsea manager Jose Mourinho did with Ricardo Carvalho and Paulo Ferreira when he took over in 2005.
Possible targets that Villas-Boas could be keen on include Portuguese playmaker Joao Moutinho, Brazilian striker Hulk and Falcao.
However, reports from England believe Villas-Boas could have a fight on his hands for Falcao, from none other than Mourinho himself.
The Sun reports Real have earmarked the Colombian international as an ideal addition to their already-burgeoning group of talented players, and both clubs are said to be willing to meet Falcao's £26.5million release clause.
While Porto ultimately allowed Villas-Boas to leave with their blessing, it is unlikely they will be happy with him attempting to dismantle the formidable team he assembled.
Porto president Pinto da Costa revealed that Villas-Boas' departure had been on the cards, and the club accepted it was time to let him go.
"His departure was thought about some time ago," Da Costa said in The Sun. "He had a great time but now goes his way and we go ours."
Da Costa made certain of the fact that the talented 33-year-old left the club maintaining the best of relations.
"I hope he wins the Premier League. We wish him success - unless it's against Porto.
"He has the capacity to win at any club, as he did at Porto, and he's going to a club that has no limits on ambition or economic trouble."
Da Costa also maintains friendly ties with Mourinho, and admits he would not be able to choose between the two should Chelsea ever face Real in the near future.
"If he faces Mourinho, it should be a draw since I'm friends with both."
It will be interesting to see if the Porto chief maintains his stance should either of his former employees prise any of their prized assets away from the Estadio do Dragao.