The Bundesliga side have met the Spanish champions' €8 million valuation of the young forward, and is set to travel to Germany to negotiate personal terms
The talented attacker shone for Los Blancos' reserve side Castilla last season, scoring 26 goals in 36 league appearances in the third tier, and has attracted attention from overseas.
The Bundesliga outfit had a €5 million offer for the 22-year-old rejected earlier in the transfer window, with the Spanish champions holding out for €8-10m.
Markus Babbel’s men have now met Madrid's valuation, although it isn't clear when the forward will travel to the German city to discuss personal terms.
Joselu was born in Stuttgart and attended school in Germany for four years, and now looks set to complete a move to the Bundesliga side after joining Real from Celta Vigo in 2009.