A good target by Madrid, but i doubted PSG to sell him. I know how valuable Vitinha for PSG. He helped PSG to win its first UCL trophy. It most likely PSG will reject it even if it's not a rumor.
Real can have a dream to sign Vitinha from PSG, but it will not happen. They can start to shifting to another target.
It must be a lesson for Madrid's scouting team to always working harder in scouting potential players that still underrated. They must not always sign a well developed player, which may cost them a lot money.
Real Madrid needs a good player to replace Modric and Kroos. Every team knows that and they will try to prevent Madrid from having a good midfielder or simply increase the price of the specific positions that Real Madrid are thirsty for.
I doubt PSG will sacrifice any of its good player because it has a good squad, they might add more players, sell those who aren't that useful but certainly will not allow these useful and having a contract for more than a year.