The German World Cup winner has emerged as one of the Gunners’ top targets ahead of the new season, with rumours suggesting that Real Madrid are ready to sell.
Although Arsene Wenger is keen to add him to his squad, the Frenchman was thought to have been deterred by the midfielder’s £150,000-per-week contract request.
Since then their interest has cooled, and Khedira has responded by dipping his expectations to be more in line with the Londoners’ desires.
Arsenal are also looking at Morgan Schneiderlin of Southampton, but the Saints’ £27m asking price would likely offset the lower earnings he would command.
It is understood that the 27-year-old former Stuttgart star wants to move to the Emirates Stadium, and that he’s already spoken to the club’s strong German contingent.
Chelsea are also keen on Khedira, but the player is likely to sit out the final 12 months of his contract with Real if he does not get a move to Arsenal.