Barcelona are believed to have made the French youngster one of their main targets this summer, but Spanish publication 'Mundo Deportivo' reports that the Catalans face some serious competition for the 20-year-old.
The newspaper reports that Zinedine Zidane's Real Madrid have made a move for the youngster after admitting defeat in their attempts to bring Kylian Mbappe to the Bernabeu, with the striker believed to be closing in on a move to PSG.
Barca were hoping that Dembele would fill the gap in their squad created by Neymar's move to PSG but they may now have to move on to alternative targets.
Dortmund are said to be desperate to keep the player, who is seen as one of the brightest young prospects in world football. The German side signed Dembele last summer from Rennes for just £15m and English publication 'The Daily Mail' reports that Peter Bosz's side have placed a huge £130m price tag on the player's head as they look to scare off interest from the likes of Real and Barca.
Dembele impressed in Dortmund last season, scoring 10 goals in 49 games in all competitions. But could he now be set to make the move to La Liga?