The Brazilian says the manager wanted to bring him to the Bernabeu in 2012, but he felt the Liga club was well covered in his position so he opted for Chelsea instead.
The Brazil international moved to England from Internacional in 2012, but has revealed that current Chelsea boss Jose Mourinho wanted him to join the Blancos instead.
Oscar said that the Portuguese manager came to watch him in an international friendly against Denmark, but the 22-year-old was put off joining the Liga giants because of the intense level of competition at the Santiago Bernabeu.
"A month before signing for Chelsea I was very close to doing so with Real Madrid as Mourinho said he wanted me," he told Globoesporte. "Before the game [against Denmark] there were talks with Madrid, but they had the playmaker position well covered. After that, I signed for Chelsea."
Oscar has scored four times in all competitions this season, helping Chelsea to fourth in the Premier League and the top spot in Champions League Group E, and the Selecao star attributes his good form to Mourinho.
"He talked to me as soon as he came to Chelsea," Oscar said. "He gives me confidence and I'm trying to return all such support on the pitch."