Madrid are desperately trying to find new ways to maintain their astronomical spending on transfers having broken the record for the fifth time last summer with the acquisition of Gareth Bale.
They paid a staggering £86million for Bale from Tottenham in Septemberand president Florentino Perez sees naming rights as the next step.
Madrid also need extra income to fund a major facelift for the Bernabeu, due to start at the end of the season.
Microsoft are also understood to be interested in putting their name to one of European football's most iconic venues.
Naming rights are nothing new, with Champions League rivals Arsenal and Bayern Munich already carrying sponsors' name on their ground.
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