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Marcelo joined Madrid from Fluminense as an 18-year-old in January 2007 and has since won three La Liga titles and two Champions Leagues.
Las Palmas midfielder Kevin-Prince Boateng has yet to decide if he will remain at the club next season, according to his agent.
Sevilla were punished after a section of their fans directed obscene chants at Real Madrid captain Sergio Ramos in the Copa del Rey.
Nacho has told L'Equipe he would love to finish his career at Real Madrid after finally establishing himself at the Liga giants.
Watch the match highlights for LaLiga Santander 2016-17 match played between Alavés vs Villarreal
Atletico Madrid defender Diego Godin has told the Daily Mail that Leicester City striker Jamie Vardy would get into Diego Simeone's side.