Since joining Liverpool from Roma, the 29-year-old has been in exceptional form, and he is undoubtedly one of the best players in the world.
Salah has shown remarkable consistency since moving back to the Premier League, and he has scored 125 goals in four seasons with the Reds so far. He has helped them win the Premier League and the Champions League as well.
Real Madrid are missing a quality right-sided attacker, and the signing of Salah certainly makes sense.
The Egyptian international could slot in alongside Karim Benzema and add pace, flair and goals to the Real Madrid attack.
The Spanish giants signed Eden Hazard to boost their attacking options, but the Belgian has proven to be a flop so far.
It will be interesting to see if they follow up on their interest in Salah with a concrete bid in the coming weeks.
The Egyptian is a key player for Liverpool, and the Reds are unlikely to want to sell him anytime soon. The Spanish giants would probably have to offer a record fee to get the deal done this summer.
Meanwhile, Gareth Bale has returned to the club following his loan deal, and it will be interesting to see if Ancelotti is willing to give him a chance to redeem himself at Santiago Bernabeu.