The former Gunners captain is rumoured to be free to leave the Nou Camp for the right price in the coming months, with the Catalan giants set to offload a number of big name players on the back of a below par campaign.
Arsenal have been linked with a move to bring back the World Cup winner, who rose to prominence in north London after joining the club from Barca as a teenager.
But with Chelsea and Manchester United interested and Fabregas being valued at upwards of £30m, a deal may not be viable for Arsene Wenger.
As a result he is looking at Real’s Khedira, who is would command a fee in the region of half that would be needed for the silky playmaker.
The Germany international missed much of last season through injury, but started the Champions League Final against Atletico Madrid despite fitness concerns.
A move away from the Bernabeu may be on the cards for the 27-year-old, who is now entering the final year of his contract, with Los Blancos unlikely to be willing to let him walk for free.