Former Real Madrid boss Fabio Capello has claimed that his old club have €500million to spend in the transfer market.

Los Blancos have endured a poor season, sitting 13 points off the pace in LaLiga having been humiliated by Ajax in the Champions League round of 16 and outclassed by Barcelona in the Copa del Rey semi-finals.

Madrid have been linked with high-profile moves for Manchester United's Paul Pogba and Chelsea's Eden Hazard and Capello expects them to spend big.

"They told me Real Madrid have €500million to spend on signings," he told Sky Sport Italia.

"I was in Barcelona this week and someone who knows Real Madrid really well told me that."