Club president Florentino Perez has decided that Santiago Solari is not the man to lead Los Blancos forward.
Perez is 'actively searching' for a replacement for, according to Diario Sport.
Not even a fourth Champions League win would save Scolari, they claim.
Perez has already started the process of finding a new coach.
Spurs boss Poch, Germany manager Joachim Low and Juventus head coach Max Allegri have all been linked.
The president will approach all three again in the coming months.
Perez will also have a contingency plan – in the form of club icon Raul.
The legend, 41, was recently made head coach of the Juvenil B team – following the sacking of popular Alvaro Benito after he criticised the first-team – and won his first match.
It is his first coaching job and some pundits in Spain believe he should perhaps have a stint in charge of Real Madrid B first.
But Perez will be hoping Raul is like Pep Guardiola, or Zinedine Zidane, and can make an instant impact.
Raul is Real Madrid's all-time appearance maker, having played 741 times between 1994 and 2010.
He was also Real's record scorer, with 323, before Cristiano Ronaldo (450) overtook him.
Raul won six La Liga titles and the Champions League three times in a glittering career with the club.
As SunSport revealed last week, Spurs are fearful Pochettino will quit for the Bernabeu at the end of the season.
The Argentine has told chairman Daniel Levy that his burning ambition is to win titles.
Poch previously warned it could take "five to ten years" for Spurs to turn into genuine contenders.
Real Madrid made contact with Poch last summer days after he signed a new five-year contract with Tottenham.
Los Blancos are willing to pay up to £40million in compensation for Pochettino.
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