According to reports Madrid are showing keen interest in the england international and are understood to be on the verge of offering the England left-back a two year contract worth £75,000 per week.
Cole is available on a free transfer this summer as he is out of contract at Stamford Bridge and has yet to be offered a new deal by Blues boss Jose Mourinho.
And sources in Spain claiming Madrid boss Carlo Ancelotti is ready to pounce as he is keen to work with the 33-year-old again after the pair formed a close bond while the Italian was in charge of Chelsea between 2009 and 2011.
Liverpool are also thought to be in the hunt for Cole, who also has offers from a number of clubs in the MLS.
Written by Steve Milne