Khedira, who has already turned down a new contract at Madrid, has emerged as a top transfer target for the Gunners.
A £24million bid has already gone in and now Spanish reports say the two clubs are in advanced talks over the transfer.
The news comes after talkSPORT broadcaster Stan Collymore tweeted that he’d been told of the negotiations, before suggesting that a deal was close.
Spoke to agent. Arsenal in advanced talks with Sami Khedira. Fuck me, they’re getting serious.Khedira is said to be interested in a move to the Emirates Stadium, where he would link up with close friends Mesut Ozil and Per Mertesacker.
— Stan Collymore (@StanCollymore) July 11, 2014
However, any transfer will depend on whether Arsenal can match his £150,000-a-week wage demands, which have previously put other clubs off trying to sign him.
Madrid are willing to part with Khedira now as he only has 12 months left on his current contract.