Real Madrid are attempting to use Sami Khedira as a makeweight in the deal for Manchester United target Toni Kroos after Chelsea rejected the chance to swap the German with Ramires, reports the Daily Express.
Khedira successfully recovered from a serious knee injury to make Germany's World Cup squad but Real Madrid are still prepared to let the midfielder leave to make room for a fresh face this summer.
Reports over the weekend suggested that Madrid had offered Khedira as part of a deal to tempt Chelsea into selling Ramires, but Jose Mourinho has since told Bernabeu chiefs that the Brazilian will not be leaving Stamford Bridge.
As a result, Madrid are now talking to Bayern Munich about possibly exchanging Khedira plus cash for Kroos. Real Madrid had been ready to pay £35m for the 24-year-old but by exchanging Khedira, they hope to pay significantly less.
It is bad news for Manchester United, who have seen their chances of signing long-term target Kroos decrease significantly as a result of Real Madrid's interest.
Kroos had been willing to sign for Manchester United once upon a time, but the chance to join up with the reigning champions of Europe seems to be too tempting to turn down.
The chance to get German international Khedira may also be a tempting proposition for Bayern Munich, who aren't keen to lose Kroos but are being forced to consider the sale because he only has one-year left on his contract.
Khedira would represent an immediate swap for Pep Guardiola and leave him to focus on strengthening other areas of the squad.