Both Tim at La Liga Loca (which by the way is the best blog covering La Liga right now) and Eurosport have reported on Spanish newspaper Marca's article insisting on Real Madrid's interest in Fernando Gago, who has said he would love to play for a big club like Real. I've written about this disapprovingly before from the point of view of an Argentina fan who wants Gago to develop well. My opinion hasn't changed.
However, the Eurosport article says that Real see Gago as a replacement for Julio Baptista, which is absurd to the extreme. Let me put it this way: it's similar to how Real bought Beckham thinking he was a central midfielder. Gago is a central/defensive midfielder. Baptista is an offensive midfielder. There is clearly a big difference. Real need to do their research before buying players for what will surely be a big sum of money. I imagine Boca won't want to let him leave for anything less than what Independiente got for Aguero's move to Atletico Madrid.
At 20 years old, Gago is a great defensive midfielder and an important member of a great Boca side. However, I'm not even sure he's the best in his position in the same age group for Argentina. Lucas Biglia - formerly of Independiente, now of Anderlecht - battled with him for the same position at the '05 World Youth Championships and was slightly more impressive. Apparently he's still doing well in Belgium, but since no one in Argentina watches that league he doesn't have the cloud of hype around him that Gago does.
Another problem with the potential move is that it could push back Gago's call-up to the full National Team. He's never been called up unlike fellow '05 WYC champions Messi, Zabaleta, Aguero and Ustari, although this is more due to the amount of competition for his position than any lack of credentials on his part. However, from what I've heard recently coach Basile wants to put together a squad consisting solely of players based in Argentina to train together frequently. This squad, plus a couple of vital overseas players (probably mostly defenders), will then go to the Copa America in 2007. If Gago stays put for a while longer he would be one of the mainstays of that side. Moving would probably kill that chance.
All this, and I haven't even mentioned the pressure he'd be under to adapt immediately and start performing for such a great club - the same problem that plagued Riquelme and Saviola when they first moved to Barca. So to sum up: I don't think this is a good idea. However, it is very possible if Real are willing to spend a lot, and Real are always willing to spend.