Record claims that negotiations between the two clubs are at an advanced stage after Benfica president Luis Filipe Vieira flew to the Spanish capital last week.
Jese, an Under-19 international for Spain, made his debut for Los Blancos' first team in the 5-1 victory against Real Sociedad in April.
His contract with Madrid expires at the end of the season, but Benfica have decided to negotiate with the Primera Division leaders anyway, given the good relationship between the two clubs.
In recent years, Ezequiel Garay, Javi Garcia, Rodrigo and Javier Saviola have all joined Benfica from Madrid, while Fabio Coentrao and Angel Di Maria have moved in the opposite direction.
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