Real will be looking for a new boss if Jose Mourinho departs, as expected, in the summer, and Villas-Boas could be a contender, having done well at Spurs this term.
However, Villas-Boas only arrived at Tottenham last summer and is keen to stay in the one place for longer than he has become accustomed to, having not lasted long at Chelsea last season.
"The fact he (Mourinho) made it public that he is looking for an exit has ended up with a lot of speculation," said Villas-Boas.
"It's very flattering but I think at the moment everybody is being linked with the Real Madrid job, because there are now lots of coaches around.
"For me it is always an honour but I am completely focused. I have a contract, I was given an opportunity, and I was extremely grateful.
"It's different. At the moment I am very, very focused on trying to get another year at one club, the same club!
"When everybody signs a contract you are expected to do it until the end."
During his spell in charge of Porto, Villas-Boas said he would like to manage in Brazil at some point, and he says that is still very much in his thoughts.
"Yes, that's the case," he said. "I definitely want to manage in Brazil."