Reports from Spain had suggested that Madrid were closely monitoring Karl's situation as he has yet to begin negotiations over a new Bayern contract, with his current deal running until 2029.
However, transfer specialist Fabrizio Romano has played down the speculation, insisting there are currently no negotiations or discussions between the player and Real Madrid.
“There have been some rumours from Spain, I think about Lennart Karl and Real Madrid,” Romano said on his YouTube channel.
“These kinds of stories will always be there, as Lennart Karl said almost a year ago that he dreams of becoming a Real Madrid player one day. Since then, we have had rumours everywhere about Lennart Karl and Real Madrid.”
Romano stressed that Karl's focus remains firmly on Bayern.
“The reality is that there is absolutely nothing at the moment. No negotiations, no conversations. I can guarantee that Lennart Karl is 100 per cent focused on Bayern.”
The attacking midfielder is continuing to work towards reaching the highest possible level, according to Romano, who pointed to Karl's age as an important factor in his current development.
“He is very young, so obviously he is working hard to reach the best possible level, but he has total concentration on Bayern.”
Karl has made 45 official appearances for Bayern, scoring 10 goals and providing nine assists. His long-term future at the club has nevertheless generated speculation because of his previously stated ambition to play for Real Madrid.
Romano added that Madrid would naturally be pleased to hear that a young player of Karl's profile dreams of representing the club, but said that did not mean there was an active transfer operation.
“As for Real Madrid, obviously at the club they are delighted to hear that a player like Lennart Karl has the dream of playing there one day. You can only be happy about it, but that's all.”
For now, therefore, the situation is straightforward: Karl remains focused on Bayern Munich, while there are no talks with Real Madrid.