The 19-year-old is now on loan at Alaves this season, making 30 La Liga appearances and seemingly enjoying a consistent run of first-team football.
Hernandez is a 19-year-old Frenchman, capped at Under-20 level by his country.
However, the transfer will apparently only be announced officially after the Copa del Rey final, in which Hernandez and Alaves will take on Barcelona.
Set to play alongside Neymar next season? Such a bargain price for one of Europe's brightest young stars attracted a host of suitors, with Liverpool and Barcelona among those taking an interest.
That policy has previously scuppered Real's hopes of signing the likes of Sergio Aguero, Diego Forlan, Radamel Falcao and Jose Maria Gimenez.
At Real Madrid, Zinedine Zidane has been laying the plans to find a long-term successor for veteran left-back Marcelo.
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Recently, a rift developed within the party after Amanatulla Khan had alleged that Vishwas was planning a coup against Kejirwal. The CBI had earlier registered preliminary inquiry against Jain to investigate the charges of money laundering against him.
But Real have seemingly ended it by chasing Hernandez to try and lure him to the Bernabeu.
In addition, the prospect of a move to Real could be dented by Atletico's reluctance to do business with their biggest rivals.
Despite some Spanish claims it's a fight between those two for Theo, the player's agent has made clear it's not.
With that in mind, the France U20 starlet is said to be prioritising a move which will guarantee that he plays regularly as he eyes a spot in the France squad for next summer's World Cup, and it appears as though he believes Barcelona will offer him the best possible chance.
"Both clubs have made offers that more than cover his buy-out clause of 24 million euro but we've made no decision yet".