It is believed that the Santiago Bernabeu outfit have agreed to extend the agreement with the German sports-clothing manufacturer, in what will be an improved dealhere.
Real Madrid are on the verge of signing a new sponsorship deal with Adidas until 2020, Marca claims.
The figure involved in the deal has not yet been announced by either side, but the new deal will certainly represent an improvement on the €35 million (£28.5m) received by the club that pertained to 2011-12.
It will be the most lucrative sponsorship deal involving a football club, surpassing the €30m-a-year (£25.5m) agreement between Barcelona and Nike by a great distance.
Adidas has been Madrid's main sponsor since 1998, with bwin.com the club's shirt sponsor since 2008.