Madrid are ready to open contract talks with the promising striker as they see him as an important player for the future, but they could opt to cash in on Morata if they fail to reach an agreement over a new deal.
The Serie A champions are believed to be keen to lure him to Turin ahead of the 2014-15 campaign and Conte feels Morata has the potential to become a world-class player.
"Morata is a great player and has a big future ahead of him," the Juventus trainer was quoted as saying by Marca.
"I can say with certainty that he has the potential to become a world-class attacker.
"However, he is a Real Madrid player at this point."
The 21-year-old's current contract with Madrid is due to expire in the summer of 2015.
He has netted six goals in 22 La Liga appearances so far this term.