The European Commission is studying information it has on allegations of illegal state aid to Real Madrid and other European clubs.

The nine-times European champions are alleged to have received a favourable deal for land around their Bernabeu stadium from the Madrid city council, as they look to develop a new shopping mall and hotel complex.

Britain’s The Independent newspaper said the dealings between Real and the city council, dating back to a 1996 agreement between them, constituted illegal state aid under article 87 of the Treaty of the European Community.

It is alleged that the council over-estimated its debt to the club so they could give Real the prime city-centre land they require for the new development.

“Citizens and companies in several member states have sent information to the Commission alleging state aid to various football clubs,” Antoine Colombani, a spokesman for competition policy at the European Commission, told a briefing on Wednesday.

“The Commission is indeed examining the situation of Real Madrid as it does with similar allegations brought to its attention.

“The Commission is currently analysing the information at its disposal and has not decided yet whether or not to open a formal investigation.”