The Spanish giants were expected to bid for Liverpool hotshot Suarez, 26, next summer as they try to solve their striker crisis.

But president Florentino Perez has decided to change tack after holding a meeting with Real boss Carlo Ancelotti and his assistant Zinedine Zidane.

They feel Aguero, 25, would be a better fit at the Bernabeu – and are preparing a £45million bid for the in-form Manchester City striker.

Aguero signed a new contract with City to keep him at Eastlands until 2017 back in May, when news of Madrid’s interest was intensifying.

But sources in Spain claim that deal contains a break clause, forcing City to study any offer they receive from either Real or Barcelona.

That could even spark a bidding war between the two clubs because Barca star Lionel Messi is Aguero’s biggest fan and wants him at the Nou Camp.