Silva is a 21-year-old defensive-minded midfielder who recently won the Brazilian league title with Cruzeiro.
In an interview with Brazilian TV station SporTV, Tite said Real have already been quoted €15million (£12.5million) for the youngster.
“Ancelotti told me he could sign him and asked if he could play him where Modric or Kroos play, because he said ‘my president will not sign defenders,’ said Tite.
“He wants instead to sign Reus and Ancelotti was wondering where he could place him.”
Real are looking at Silva as a replacement for Sami Khedira, but it now seems they will sign the youngster regardless of whether Khedira stays or goes.
Silva has to make his national team debut though he looks set to be called up soon by national team boss Dunga.
Arsenal, Manchester United and Inter Milan are also believed to be watching him.
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