The German international has been unable to agree terms on a new deal at the Bernabéu and the club is willing to sell him in the next transfer window or risk losing him for nothing in the summer when he can leave under the Bosman rule.

Providing Real’s asking price of €10million is met Madrid will let Khedira leave the club. The 27 year old has been the subject of speculation linking him with Liverpool, Chelsea, Arsenal and Manchester United.

It is also understood that Khedira is ready and willing to lower his wage demands to ease a January move with Manuel Pellegrini closely monitoring the situation.

Real Madrid’s Italian boss, Carlo Ancelotti has publicly declared that he is in favour of keep Khedira at least until the end of the current campaign.

“If he wants to sign a contract extension, the club will review, if not, he will leave at the end of the season but we have until June to reach an agreement with him” Ancelotti said.

Manchester City are perhaps planning on life after Yaya Toure who is rumored wants away from the Etihad. He has continuously being linked with a move to the Ligue 1 with PSG his likely suitors.

The Ivorian is 31 years and knows he is one huge contract away from retirement. He will fancy another big money move to the Parisian club to join Zlatan Ibrahimovich, Edison Cavani and Lucas Moura.

Toure’s would-be-replacement, Khedira, was part of Coach Joachim Löw’s squad that won the 2014 FIFA World Cup in Brazil last summer and comes highly recommended despite his age and a troublesome knee injury.

The former VFB Stuttgart man joined Real Madrid in 2010 for an undisclosed fee and made his debut for the Spanish giants in a club friendly against Bayern Munich.