كتب : Ahmad Saied
The sports daily added that Real will also pay 30 million Euros as part of the deal to land the Spanish duo before the start of next season.
Arsenal manager Arsene Wenger is a long-time admirer of Baptista and attempted to bring him to London from Sevilla last summer, only to lose the race to the Spanish giants.
Real Madrid's new president Ramon Calderon said during the official presentation of Ruud van Nistelrooy on Friday that new signings are still on their way to the Santiago Bernabeu.
The Spanish capital club has already captured Italy's World Cup-winning captain Fabio Cannavaro and his Juventus teammate Emerson as well as United's Van Nistelrooy.
Calderon and new coach Fabio Capello have set their sights on competing next season in both domestic tournaments and the Champions League to end three seasons of title-drought.
According to AS's unsourced report, Capellou is targeting international forward Reyes to play on the left flank after the sudden injury of Antonio Cassano and failing to sign Dutch international Arjen Robben from Chelsea.
Real sports director Peja Mijatovic has reportedly opened talks with Arsenal vice-president David Dein over the acquisition of Fabregas, in a bid to reinforce the holding-midfielder position.
Reyes, 23, said on more than one occasion that he is not happy in London, admitting that he is keen to return to La Liga and play for Real Madrid.
On the other hand, 19-year-old Fabregas stressed that he is happy with the Gunners and wants to see out his contract with the London club before considering a return to Spain.
UEFA Champions League finalists Arsenal are expected to stand firm over the pair who became key players in Wenger's young side.