With the 25-year-old German becoming available for only £20 million after the end of this season, due to a release clause being activated in his contract next summer, Manchester United, along with a host of big clubs, including Chelsea, Liverpool, Arsenal, Barcelona and Bayer Munich are interested in signing him.
Many were expecting a bidding war between these sides for Reus' signature, but according to the Daily Star, the German midfielder has snubbed all the other clubs and agreed to move to Real Madrid.
It is believed that the Los Blancos' ability to win silverware has prompted Reus, who has been outstanding since signing for Dortmund, to make a move to the Bernabeu.
The German attacking midfielder, who completed a €17.1 million move from Borussia Mönchengladbach to Dortmund in January 2012, had earlier admitted that he is interested in moving to a side who can guarantee him trophies.
And seeing that Real Madrid have already won four trophies - Copa Del Rey, Champions League, UEFA Super Cup and the FIFA Club World Cup - in 2014, Reus' decision to move to the Spanish capital seems to have been a relatively simple one.
According to reports in Spain, the 25-year-old will be signing a five year contract with the La Liga giants next summer.
Meanwhile, Real Madrid star Cristiano Ronaldo believes that his side are capable of successfully defending the Champions League crown this season.
The La Liga outfit recently beat Argentine side San Lorenzo 2-0 to claim the Club World Cup title.
And Ronaldo, who is himself having an excellent season, having already netted 25 goals from only 14 La Liga appearances, feels that the Los Blancos can build on their success and become the first team to win the Champions League two times in a row.
"I hope that 2015 will be just as good as 2014 and we can win everything we have won this year," the former Manchester United forward told Goal. "Especially the Champions League."