Ramos is out of contract in the Spanish capital on 30 June and is theoretically free to speak to other clubs, but his intention is to stay at Los Blancos.
The report continues that despite discrepancies between the terms of a contract extension, both parties want a continuation of the relationship.
The two are said to be in an agreement that a two-year contract would be a compromise on behalf of each party, but Ramos is said to be unwilling to accept a 10 percent pay cut – in line with the rest of his teammates – on his €12m per annum salary.
The talismanic central defender celebrates his 35th birthday in March and has been at Madrid since 2005.
Ramos has clocked up 668 first-team appearances for Los Blancos, netting 100 goals in that timeframe.