Passaro insists that there has been no official approach for the attacking midfielder so far, but confirmed that Madrid are keeping tabs on the Brazilian starlet.
"There was no official approach from Real Madrid or any other club. What we do know is that Real Madrid knows and follows Igor, just as they certainly follow many other young talents around the world, including in our own squad," he told Globo Esporte.
"Also due to the possibility that Igor could get a Portuguese passport in the next six months, which would mean he would not take up a foreign player spot in a European club. But there is nothing going on."
When asked about the links to Madrid, Sao Paulo's director of football Rai added: "It's true. What we can say is that [Igor Gomes] is a player that is attracting the interest of European clubs. But there has been no official contact.
"It is a reality that he is igniting interest. I have already spoken to European friends who have made comments, but that's it."