The Germany international is out of contract at the end of the season but could yet remain at the Santiago Bernabeu.
Real Madrid is set to offer Sami Khedira a new contract amid reported interest from a host of clubs across Europe.
The Germany international's current deal at the Santiago Bernabeu expires in June and he has been forced down the midfield pecking order following the summer signing of Toni Kroos from Bayern Munich.
Premier League sides Manchester United and Arsenal have been strongly linked with a bid for his services for much of the last 12 months, with Khedira free to talk to interested suitors as of January.
But Madrid coach Carlo Ancelotti said at a news conference this week that he believes the club's hierarchy intends on sitting down with the 27-year-old, but hinted the player may need some persuading to remain at the club.
He said: "We still have until June to renew his contract. I think the club intends to renew the deal and if he does not want to then he will remain here until to the end of season."
Khedira spent five months on the sidelines last season after tearing knee ligaments in November, but recovered in time to lift the World Cup with Germany this summer.
He joined Madrid from Bundesliga side Stuttgart in June 2010 for a fee in the region of 19 million euros and went on to become a key player under former boss Jose Mourinho.
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