Álvaro Morata is on both Arsenal and Chelsea's list, according to Italian calciomercato specialist Gianluca Di Marzio. While some reports from Spain suggested that Real Madrid were now ready to keep the Spanish attacker hoping that he would accept a bench role behind Karim Benzema, it seems that it will be difficult for Los Blancos to look away and pretend they're not receiving big offers for Morata.
Here's what Di Marzio reports:
Alvaro Morata has been impressive so far during the Euro while his future remains uncertain. Real Madrid controls his future since they have a buy back clause to bring him back from Juventus (who would like to keep the striker), they could then sell him at a higher price. The most concrete interests are coming from England, there is a derby in London to sign him: Chelsea continues to monitor the situation while Arsenal has identified Morata as their target after Vardy turned down opportunity to join them. Morata's future could take place in the Premier League.
If he really is going to be a reserve, Real Madrid might be better off accepting big offers for the attacker and try to sign a decent backup striker using that money.