The Spain Under-20 international has been cleared to leave the Bernabeu on loan after struggling to force his way into Jose Mouinho's plans.
And Moyes wants to bring the starlet to Goodison Park having missed out on him when he signed for Real last year.
England bound? Sergio Canales (right) has been linked with a move to Everton
The Spanish giants are reluctant to sell 20-year-old Canales as they believe he has a bright future and are also thought to be unwilling to loan him to another La Liga side.
That leaves Everton and German side Wolfsburg at the head of the queue to sign the midfielder, according to The Mirror.
In the market: David Moyes is looking to strengthen his Everton side
Moyes is once again expected to have to wheel and deal over the summer with limited funds available to freshen up his squad.
And a move for Canales could allow him to add genuine talent without breaking the bank.
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Source: Daily Mail
Source: Daily Mail