His decision apparently comes after Zinedine Zidane left his position as Los Blancos manager. Kovacic enjoyed playing under Zidane and had found a regular route to the first team with him at the helm.
With Zidane gone Kovacic feels his position in the side could be under threat. Madrid already have a wealth of talent in their midfield such as Luka Modric, Toni Kroos and Isco, which could make it difficult for the young Croatian to get regular game time.
Kovacic offers more versatility than a lot of his midfield teammates though and can fill in a number of roles throughout the side. He will apparently wait to speak to the new manager once one is appointed, before committing his future either way.
If he cannot get reassurances from the new boss, Kovacic will reportedly request a move away from the Santiago Bernabeu.
Juventus looks set to reignite their interest in Kovacic if he becomes available after tracking him last summer. AS were also reporting the Turin side had a €75m bid turned down by Real Madrid for the player's services last summer.
It’s unclear how much Los Blancos would demand for their midfielder, but with transfer costs rising exponentially in recent seasons they could ask for a fee in the excess of €100m for the 24-year-old who is under contract until 2021.