The France international featured in 35 games for Carlo Ancelotti's side last season, playing his part in Real Madrid's La Liga and Champions League success.
However, the arrival of Antonio Rudiger has cast doubt over the future of the former Lyon player, with the signing of Rudiger set to result in David Alaba moving across to left-back.
With Mendy set to fall down the pecking order, Fichajes are reporting that Los Blancos are prepared to sell Mendy this summer, with Rayo Vallecano's Fran Garcia touted as the Frenchman's replacement.
Chelsea and Manchester United have been credited with showing an interest in the Real Madrid full-back, while Italian giants Juventus are also in the running to sign Mendy.
Real Madrid will be looking to recoup the €48m (£41m) fee that they paid to sign Mendy from Lyon in 2019.
The 27-year-old, whose current contract runs until 2025, has made 105 appearances for Los Blancos, scoring five goals in that period.
Nizhny Novgorod 
Lokomotiv Moscow 
Lorient 
Paris Saint Germain 
Monaco 
Lille 
Everton 
Liverpool 
Manchester Utd 
Sheffield Utd 
Marseille 
Nice 
Atalanta 
Fiorentina 
Ajax 
Excelsior 
Heerenveen 
PSV 
CSKA Moscow 
Spartak Moscow 
Udinese 
Roma 
Brighton 
Manchester City 
Go Ahead Eagles 
Feyenoord 
Montpellier 
Nantes 
Real Sociedad 
Real Madrid 
Dnipro-1 
Dynamo Kyiv 
West Ham 
Shakhtar Donetsk 
Bayern Munich 
Eintracht Frankfurt 
FC Augsburg 
Werder Bremen 
RB Leipzig 
Borussia Dortmund 
SC Freiburg 
VFL Wolfsburg 
Burnley 
Sampdoria 
Como 
Juventus 
AC Milan 
Brentford 
Bayer Leverkusen 
VFB Stuttgart 
Atletico Madrid 
Athletic Bilbao 
Elche 
Espanyol 
Stade Lavallois 
Bordeaux