The 20-year-old spent four years with Barcelona before making the move to Manchester City, and he made five first-team appearances for the Citizens before being released at the end of last season.
Bernabe has since signed with Parma, although the midfielder is yet to represent the Serie B outfit, as he is still recovering from injury.
According to Bernabeu Digital, Real Madrid and Liverpool are two clubs to have 'shown interest' in the Spaniard, who has a contract with his Italian side until June 2024.
The report claims that Real Madrid scouts are 'keeping a close eye' on the youngster, while Liverpool will closely monitor his performances when he returns to the field.
Bernabe - capped on three occasions by Spain Under-17s - made all five of his first-team appearances for Man City in the League Cup. body check tags ::