The German World Cup winner is now in the final 12 months of his contract at the Bernabeu, which has lured the Gunners in.
An offer of around £24m is understood to be on the table, but negotiations surrounding personal terms have stalled with the player’s lowered demands of £134,000-per-week still a little too high for Arsene Wenger.
Bayern Munich have been linked with a move for the 27-year-old, but rumours have suggested that the Bundesliga champions are looking to nab him for free at the end of next season.
This is a situation Real are desperate to avoid, with a sale now much more appealing.
Madrid may opt to lower their valuation of Khedira which could free up funds for Arsenal to match his salary expectations, but the situation is unclear.
If Bayern were to snap up the rangy midfielder it would be a coup given that Los Blancos recently snapped up Toni Kroos at a discounted rate given his contractual situation – which was similar to that of Khedira’s now.
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