Casillas, who keeps goal for the Spanish giants as well as captaining his triumphant national team, told The Sun that he fully expects the 29-year-old to join former boss Jose Mourinho in moving to the Bernabeu.
"From what I am hearing the signs look good," said Casillas, who became a global sensation for kissing his TV journalist girlfriend in a World Cup final post-match interview.
"I have only briefly spoken to people at the club but I am confident that he can be a Real Madrid player next year.
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"I think it will be the right move for him both professionally and personally."
The Chelsea and England left-back has reportedly been growing increasingly disillusioned with life in Britain, with relentless tabloid stories about his life in the wake of his split from wife Cheryl Cole.
And the 29-year-old Casillas believes that media intrusion into Cole's life could be the key factor in bringing him to Spain.
"A clean break from England is hopefully something he is very interested in," he added. "It will be his last big contract and who better to sign for than his old coach Mourinho at Real.
"He will know better than anybody this club will be successful under Jose. Jose has proved he buys players and makes them the very best in the world in their position.
"With Ashley he doesn't need to do that because he's already the best left-back in the world. Jose knows all about him and it comes as no surprise to me he is very much on Madrid's radar."
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