Manchester United and Chelsea would appear to have suffered a fatal blow in their pursuit of Sami Khedira.
According to sources cited by the Daily Star, the Real Madrid midfielder has accepted a new three-year deal that will see him extend his stay at the Santiago Bernabeu until 2018 and potentially take home around £3 million per season.
26-year-old Khedira - reportedly valued at around the £20 million mark - is an influential figure for the La Liga giants, having become a mainstay of their midfield since arriving in Spain from Bundesliga outfit Stuttgart back in the summer of 2010.
The German international, who will presumably be desperately hopeful that he is able to feature for his country at the 2014 World Cup in Brazil despite currently being sidelined with a serious knee problem, had reportedly been attracting interest from Manchester United and Chelsea as well as title rivals Arsenal.
Now, however, it appears as if each of those clubs will have to look elsewhere in order to strengthen their midfield.
For Manchester United boss David Moyes, January is likely to be a defining month with the club clearly lacking star quality in the centre of midfield.
Chelsea, meanwhile, appear to be blessed with a dazzling array of attacking talent but have preciously little adequate cover for the likes of ageing England international Frank Lampard and Brazilian engine Ramires.