The young Spaniard is regarded as one of the finest talents in world football and is also wanted by Liverpool boss Jurgen Klopp, as he seeks an alternative to Lyon ace Nabil Fekir.
ALSO READ: Five-year contract agreed: Chelsea target will complete £52.8million Premier League move in the next 24 hours
He was just limited to 28 appearances for the Spaniards last season and speculation about his future has been intensifying over the last few weeks, as Madrid’s move for Neymar picks up pace.
And according to the Daily Express website, he has told President Florentino Perez he will quit the club if the Brazilian is signed, as the potential arrival of the winger would threaten his status as the clubs successor to Cristiano Ronaldo.
Reports go on to say Asensio repeatedly tells team-mates he is leaving when Neymar is discussed in the dressing room.
The news will alert Chelsea, if true, as the Blues may be seeking an immediate replacement for Eden Hazard.
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The gifted little Belgian had a superb season for the Blues last year and has admitted he will wait to see which manager is appointed, and what players are signed before he fully commits himself to the club long-term.
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