According to the Mirror, Arsene Wenger has identified the Madrid enforcer has his next marquee signing after the capture of £35m former Barca forward, Alexis Sanchez. Khedira rejected a new two year deal at the Estadio Santiago Bernabéu- a situation which has in turn forced the hands of Real Madrid to cash in on the midfielder with a potential sale rather than let him walk for costless when his contract expires next summer.

The potential deal will coast Arsenal £23m after an agreement was struck with Khedira but the club is reluctant to yield to the German’s excessive wage demands.

However, Gunners boss Wenger feels confidence that he can persuade Khedira to back down on his demands. If the deal turns sour, Arsenal may re-ignite their interest in Bayer Leverkusen midfielder, Lars Bender or Southampton’s Morgan Schneiderlin.

Real on the other hand are expected to fund the arrival of Bayern Munich’s Toni Kroos from the Khedira sale just like the sale of Angel Di Maria may fund the arrival of Brazil 2014 Golden Boot recipient, James Rodriguez.