Benjamin Alonso Ezquerra, a member of the club's Under-10 team, has passed away after being involved in a road traffic accident
According to AS, Ezquerra, who signed for Madrid's youth setup on June 11, was hit while crossing a busy street in an attempt to catch a loose ball.
The reigning Liga champions expressed their shock in a brief club statement released shortly after the tragic accident.
"Real Madrid CF expresses its deepest sorrow about the death of its youth player Alonso Ezquerra, and sympathises with his family and friends right now at such an extraordinarily difficult time."
Alvaro Morata, a 19-year-old midfielder who recently joined the club's first team, sent his condolences to Ezquerra's family via the social networking site Twitter.
"The whole club is Alonso Ezquerra's family," he tweeted.
"All of our support goes to the family [of the deceased] at this time. Rest in peace."