James Rodríguez could be set for a return to Madrid, with Rayo Vallecano eager to sign the free-agent Colombia midfielder, sources told ESPN.

The LaLiga club, based in the Vallecas neighbourhood of Madrid, have been working for weeks on adding the player of the tournament at this summer's Copa América, whom they consider the ideal star to fire up the fan base for their centenary celebrations, sources said.

Sources also indicated that Rodríguez, who played for Real Madrid from 2014-20, would welcome a return to the city and has given his blessing to a deal with Vallecano, even at a reduced salary.

One obstacle to the move is LaLiga's economic control requirements. Vallecano have discreetly been working on making the numbers work, but the situation has been difficult to resolve at this late point in the transfer period, sources added.

A source close to the player told ESPN that a deal with Vallecano is in its final stages, though the club has denied this is the case.

Rodríguez played last season with São Paulo but did not sign a new contract to remain with the Brazilian club. In a nomadic career since leaving Madrid, he has also played for Bayern Munich on loan, Everton, Al Rayyan and Olympiacos.

Rodríguez starred at the recent Copa América in the United States, contributing a tournament-record six assists as his team reached the final before losing to Argentina.