Madrid are ready to pay in excess of the B£80million they spent on Cristiano Ronaldo, but Tottenham are thought to be holding out for even more.
Madrid ramped up their public pursuit of the 24-year-old towards the end of last month, with a number of the club's playing staff, and manager Carlo Ancelotti, praising the player.
But talks between the two clubs appear to have reached an impasse recently. Ancelotti said last week that he did not need to add any more players to his squad and it is understood that reports of the two clubs agreeing a B£93million fee are wide of the mark.
Although Madrid recognises Bale's talent having been impressed by his 31-goal haul last season, Raul thinks a world-record fee for the Welshman is simply too much.
"Bale is a wonderful player and he will be a great addition to Real Madrid, but his price is too high," Raul told the website of his club Al Sadd in Qatar.
"Tottenham overestimates in the price of Bale."
Bale has not played for Tottenham for over a month as he has been struck by two injuries, the first to his buttock, and the most recent one, which will keep him out of Thursday's Europa League game against Dinamo Tbilisi, to his foot.
Spurs midfielder Paulinho, who joined the club from Corinthians for a then club-record fee of B£17million, wants Bale to spurn Madrid's interest and stay at White Hart Lane.
"I sincerely don't know (if he will stay), but I think this is something more private for Bale, he doesn't tell me anything," he told Fox Sports Brazil.
"But I hope he continues with us, so that he can help us. He is a great player and achieved great stats last season, so I hope he stays with us."
- Sports & Recreation
- Carlo Ancelotti
- Cristiano Ronaldo
- Real Madrid