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The midfielder is a believed to be a major target for two major Premier League clubs but his agent has stressed that nothing is set in stone transfer-wise yet

Arsenal and Chelsea target Sami Khedira is holding crunch talks with Real Madrid to decide his future, according to the player's agent.

The Gunners are willing to match Real Madrid's €25 million valuation of the midfielder, but have baulked at suggestions the player wants a €250,000-a-week salary.

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 Daily 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."

Should Khedira stay at the Santiago Bernabeu, he could face further competition for a spot in the Blancos XI should his Germany team-mate Toni Kroos be signed from Bayern Munich in the coming days as expected.

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