The 23-year-old could be on his way to the Bernabeu...
Jorg Neubauer had been quoted as saying on Wednesday that Khedira is ready to join Madrid, adding, "If they (Real Madrid) reach an agreement with Stuttgart, the transfer will take place.''
Neubauer has now clarified that Stuttgart and Madrid are in discussion.
"It is true, he does want to play for Real Madrid," Neubauer told Bild. "The clubs have to agree, and they are in discussion."
The German club's sporting director Jochen Schneider admitted that negotiations are going on, but said that an agreement had not yet been reached.
"I can definitely confirm that a deal has not yet been struck," Schneider said. "We are still in talks with Real Madrid. To say that we want to sell the player is not true, but we may have to resort to it."
Khedira has a contract with Stuttgart until the end of the 2010-11 season and the club runs a risk of losing the talented midfielder for free next summer.