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The World Cup winner is "not close" to agree a contract extension with Real Madrid as he enters his final year, but Jorg Neubauer insists no bid has been accepted either

Arsenal have not yet agreed a fee for Sami Khedira but discussions with Real Madrid are set to continue, according to the player's agent.

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Goal understands the Gunners are willing to match Real Madrid's £20 million valuation of the midfielder, but have baulked at the player's £200,000-a-week salary demands.

Khedira has just one year remaining on his current deal, with Jorg Neubauer admitting an extension is "not close", but insists no offer has yet to be accepted for the World Cup winner.

"We are not in talks with Arsenal," Neubauer told The Telegraph. "I don't think a fee has been agreed, otherwise I would have been told.

"When a club have an interest I am sure they will call me and we will speak about things. The same goes for Chelsea.

"We are talking to Real Madrid about his contract, but nothing is close to being decided. Sami has just returned from the World Cup and has gone on holiday."

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