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Published 09:15 11 Aug 2018 BST
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Real Madrid are keen to sign the playmaker, which could signal that Luka Modrić is nearing a move to Inter Milan.
Madrid boss Julen Lopetegui, who took over from Zinedine Zidane in the summer, has worked with Thiago before, both at youth and senior level in the Spanish national team. Lopetegui led a Spain U21 side to European glory in 2013 and Thiago was a key player in the side.
A switch to Real would see Alcantra follow in the footsteps of Lopetegui, Luis Figo and Ronaldo as players to have appeared for Barca and their long-time rivals.
A move to Madrid for Thiago would mean that Bayern have to sign at least one central midfielder before the transfer window shuts at the end of August, having already sold Arturo Vidal to Barcelona.
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