The 16-year-old forward has attracted considerable attention with his development at Old Trafford, and the Spanish club are understood to be in a strong position as they pursue his signature.
There is considerable admiration for Gabriel's ability within Madrid, with the assessment of his potential summed up in a simple phrase: "He's brilliant."
However, enthusiasm about his talent should not be mistaken for a completed agreement. There are still formalities to resolve, with January 2027 identified as the potential point at which the teenager could be registered.
Real Madrid's interest reflects their belief that Gabriel has the technical qualities and attacking instincts to develop into a significant prospect.
He is capable of operating from either flank, receiving between the lines or moving closer to the centre-forward. His ability to change direction in tight spaces and beat opponents one-on-one has particularly impressed those monitoring his progress.
Gabriel also offers more than individual dribbling. His ability to combine with team-mates and continue attacking moves after creating an advantage is another part of his appeal.
Real Madrid are not alone in recognising his potential. Barcelona, Manchester City, Bayern Munich and Paris Saint-Germain have also been linked with the youngster, making the race for his future highly competitive.
January 2027 the key date
Gabriel turned 16 on October 6 and is currently training in Madrid while his future is resolved.
January 2027 is understood to be the important date in the proposed move, when Real Madrid could look to complete his registration during the winter transfer window.
Until the necessary steps are finalised, however, the club are conscious that a favourable negotiating position does not guarantee an arrival.
Castilla plan, but Youth League complication
If the transfer is completed, the intention is for Gabriel to begin his development at Castilla, giving him the opportunity to adapt to a more physically demanding level of football.
At 16, the priority would be to provide a gradual transition rather than rush him into the first team. An initial period with the youth sides has not been ruled out either.
There is also a complication involving the UEFA Youth League. Having already represented Manchester United in this season's competition, Gabriel would not be eligible to play for another club in the same edition.
The relevant UEFA regulations restrict a player to one club during a particular Youth League campaign.
That would prevent him from featuring for Madrid in the competition this season, should the move go through, but would not affect his eligibility for future editions.
For now, Madrid's confidence in the player's potential is clear, even if the final steps of the proposed move remain outstanding.