Chelsea, Arsenal target Sami Khedira rejects Real Madrid contract offer

Midfielder Sami Khedira could be heading for a move away from Real Madrid after he rejected the Spanish club's latest contract offer. The German international has been linked with a move to Arsenal and Chelsea for most of the summer.

The German World Cup winner is widely expected to make a transfer away from the Bernabeu to England before the transfer window closes on August 31st. Real Madrid are concerned that Khedira is planning to let his contract run down until next summer and thus are ready to sell now.

Carlo Ancelotti, the Real Madrid coach, confirmed to reporters that Khedira has turned down a three year contract. 

"It's a different situation to Di Maria," said Ancelotti. "He's not asked to go. He's rejected an offer to renew, but has a year of contract. We'll see what happens."

Khedira is valued by Real Madrid at around 25 million euros but it is understood they will accept a significantly reduced offer to let him leave Spain now.