The Paraguayan, ranked 968 in Castrol Rankings, has been a revelation for the Alicante side since his summer switch from Borussia Dortmund, scoring six goals so far in the Primera Division, and forging an excellent partnership with David Trezeguet.
Given the news that Gonzalo Higuain could be out of action for three months with a back problem, los Blancos are in the market for a new front man in January, and Valdez told the media today that he was stunned by the speculation.
“I do not know, this is surprising. It's more a pleasant surprise though, and for me it's an honour. There are four great teams in the world, and Madrid are in the first or second position.
"This interest is an example of the work that we are doing here. I know nothing of the interest, but I will continue to do well at Hercules, and I am happy with this.”
Real Madrid have also been linked with moves for Wolfsburg striker Edin Dzeko, Villarreal’s Nilmar, and also Emmanuel Adebayor from Manchester City.