The German international, who performed outstandingly in defensive midfield during Joachim Löw’s side’s run to the World Cup semi-finals, is believed to have met José Mourinho at Madrid’s training ground in Valdebebas on Wednesday.
Khedira still has a year to run on his contract at Stuttgart, yet Madrid president Florentino Pérez has been reported to have agreed a €10 million fee to bring him to the Santiago Bernabéu.
However, Oliver Schraft, a Stuttgart spokesman, has refuted that a deal has been struck between the clubs, stating: “There have been no new developments. We cannot confirm any of the things that are being said.”
More cold water was poured on the Khedira transfer fire by the player’s agent, Jörg Neubauer.
“There has been no contact with Real Madrid,” he said.
Chelsea manager Carlo Ancelotti has been linked with a move for the 23-year-old as a replacement for Michael Ballack, who Khedira replaced in the German team after Ballack was injured in the FA Cup final before the World Cup.
With Joe Cole also heading out of Stamford Bridge, Ancelotti is thought to have been tempted to make a move for Khedira.
Meanwhile Old Trafford chief Sir Alex Ferguson will soon be on the lookout for replacements for Paul Scholes and Ryan Giggs in the Red Devils' midfield, and is thought to be eyeing up Khedira having also seen Owen Hargreaves suffer another injury setback.
One player who has officially signed for Real Madrid is Pedro León, the 23-year-old winger.
León, who was prized away from Getafe for a fee of €10 million, has agreed a six-year deal and declared the move as “a dream.”
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