SPECIAL REPORT: The Champions League holders are set to sign the Brazilian midfielder, with the Spaniard seemingly on his way out

By Alberto Pinero and Gorka Posada Real Madrid are closing in on the signing of Cruzeiro midfielder Lucas Silva after telling Asier Illarramendi he will be allowed to leave the club amid interest from Athletic Bilbao The Santiago Bernabeu side first showed an interest in signing the 21-year-old at the start of the 2014-15 season, but the deal was put on hold after Sami Khedira opted to remain at the club.Madrid re-opened talks when Luka Modric picked up an injury in November, only for a deal to once again stall as the Croatia international made a quick recovery.However, Madrid have already agreed personal terms with Lucas Silva and are confident of reaching an agreement with Cruzeiro, too. The Champions League holders have tabled a €12 million offer for the Brazil Under-21 international - a mere €3m below Cruzeiro's €15m asking price - and a deal appears to be imminent.That move has subsequently pushed Illarramendi one step closer to a move to Athletic. The 24-year-old has failed to hold down a regular starting berth since joining the club in a €32.2 million from Real Sociedad in the summer of 2013.Athletic coach Ernesto Valverde already hinted at a move for the former Spain Under-21 star earlier this week and the Bilbao outfit are ready to step up their interest."Illarra? There’s always speculation. He is a good player," Valverde was quoted as saying by AS."There are players at big clubs who are not interested in coming here, but we know which players are in the range of Athletic. There are four or five."Athletic attempted to sign Illarra on a one-year loan deal at the start of the season, but their offer was rejected by Madrid and they are now preparing a bid to get their man on a permanent basis.The Basque outfit have the financial resources to make a big-money signing following the summer sale of Ander Herrera to Manchester United and are willing to break their club record of €12m paid for Roberto Rios from Betis in 1997.