Thegoalmac understands the Champions League holders have already agreed a fee with Porto and thrashed out a five-year deal with the 23-year-old, who had also been of interest to Barcelona as a long-term replacement for Dani Alves.
However, the right-back's father maintains that other clubs remain interested in the Brazilian, telling radio station Renaissance: "There is no closed business. In addition to Real Madrid, there are other clubs speaking well of him, nothing is confirmed."
The player's current deal expires in the summer of 2016 but his reluctance to discuss fresh terms with Porto has led Madrid to bid for his services as they prepare to allow Alvaro Arbeloa to leave the club.
Danilo was forced to come off in the 4-0 victory over Basel in the second leg of his side's last-16 Champions League tie on Tuesday after being knocked unconscious following a sickening clash of heads with goalkeeper Fabiano.
Further tests were carried out in a hospital overnight but the former Santos man was given the all clear and allowed to go home on Wednesday.
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