Real Madrid had first made contact with Leipzig to explore the conditions of a potential deal for the 19-year-old Ivory Coast international, one of the market's most sought-after young talents, before formalising that interest into a concrete offer.
RB Leipzig are demanding a fee in excess of €100m to sanction his departure, with the club keen to make Diomande their record sale. The winger, who joined from Leganes for around €20m last year, contributed 12 goals and nine assists in 33 Bundesliga appearances last season and impressed for Ivory Coast at this summer's World Cup, where he featured in all four of his side's matches as Ivory Coast reached the last 32 before being eliminated.
Diomande's combination of pace, dribbling ability and versatility across the front line fits Real Madrid's broader recruitment strategy of targeting young players with significant room to develop, and he had already been under close observation from the club's scouting department before the tournament in North America.
Paris Saint-Germain remain in the race for his signature and have been in talks with Leipzig for several weeks, though the French club have similarly been unable to meet Leipzig's asking price, leaving the situation open. Both Liverpool and Bayern Munich have also been credited with interest in Diomande at various points this summer, underlining the scale of competition Real Madrid face if they are to land the winger before the transfer window closes at the start of September.
Madrid's interest in Diomande has also been read as a sign the club may be stepping back from a separate pursuit of Bayern's Michael Olise, given the financial constraints of pursuing multiple high-value wide players in the same window, with Bayern having made clear the France international is not for sale this summer regardless of any offer.