Goetze, 19, is widely regarded as the best German player in his age group and has already scored twice in nine matches for the senior national team.
After he helped Germany reach the Euro 2012 finals at a canter, Goetze was allowed to skip the final qualifying game against Belgium.
On returning to Dortmund he was asked about a rumour in Spanish sports daily Marca that linked him to Real.
"I am very content where I am," he said. "But you never know: (Nuri) Sahin also came from this club’s youth system and now? He plays at the Bernabeu."
The Bundesliga is again regarded as one of the strongest leagues in Europe, both in terms of quality and competitiveness, but it is clear that Spain and England’s biggest clubs are seen as a step up.
And Goetze pointed to the vogue of his compatriots joining Madrid over other clubs, hinting that it is the logical progression.
"Playing with (Mesut) Ozil and (Sami) Khedira for Germany is a dream for me because they are Real Madrid players," he said.
"It is special to play with them."
Goetze was, however, keen not to distance himself from Real’s bitter rivals Barcelona - he counts Barca boss Pepe Guardiola among his heroes.
"Guardiola did not play in exactly the same position as me, so in that sense he is not my direct icon so far as players are concerned," he said.
"But as a coach, the philosophy he imprints on his team is one of the main reasons for the 12 titles they have won in three years."
Goetze was then asked which were his favourite teams other than Dortmund, to which he replied: "my favourites are Arsenal and Barcelona".