The Germany international – who recently helped his nation to lift the World Cup – has emerged as one of the Gunners’ major targets in recent weeks, with rumours indicating that negotiations with the player have taken place.
Despite his recent form, Real Madrid are believed to be ready to sell while Khedira himself is open to joining international colleagues Per Mertesacker, Mesut Ozil and Lukas Podolski at the Emirates Stadium.
However, Arsenal are reluctant to match his wage demands.
The 27-year-old is believed to be asking for around £150,000-per-week, which Arsene Wenger is reluctant to pay alongside a £20m fee.
But Khedira has not yet given up on the move, according to reports.
He may well have to lower his demands to push the deal, with Wenger now considering using Jack Wilshere in a defensive midfield role.
Podolski has also revealed that his compatriot would be interested in life at Arsenal:
“I didn’t have to try to [convince Khedira to join Arsenal,
“Sami knows how much fun he could have with me, Mesut Ozil and Per Mertesacker at Arsenal.”