The Manchester United boss plans to offer the injured Germany captain a one-year contract at Old Trafford with an option of a 12-month extension, according to reports.
With reports suggesting United's American owners are over a £1billion in debt, resources could be thin for Ferguson this summer, who may be forced to scour the free market having already spent £7.5million on Mexican recruit Javier Hernandez.
Real president Florentino Perez is believed to be ready to give the 32-year-old a golden handshake to leave the club this summer.
However, while he is admired by Sir Alex Ferguson, sources at Old Trafford believe Raul is too old to make a significant impact on the Premier League.