The Gunners have a fine relationship with the Spanish side, which was evident during the rapid move of Mesut Ozil, and the underperforming capital club are happy to allow their squad players to leave.
Morata has made minimal impact his season despite the departure of competition Gonzalo Higuain in the summer, however Real feel he will become a top player given time.
Casillas has been second choice stopper for six months now and is desperate for a move away from the club he has spent his entire career at; however the Gunners could not guarantee the legend regular first team football.
The pair are both desperate to be involved with Spain in their quest to regain the World Cup next summer in Brazil but neither are likely to be first choice by warming the bench at Madrid.
A combined bid of around £15million could secure the services of both men from Arsenal.