Real Madrid manager Carlo Ancelotti has reluctantly decided that if he can't persuade Sami Khedira to sign a new contract then he will allow Arsenal to complete a €29m summer deal and prioritise keeping Angel di Maria, despite serious interest in the Argentine star from both Manchester United and Paris Saint-Germain.
Khedira has entered the final year of his contract in the Spanish capital and flatly refused to discuss terms over a new one, which means that despite being a huge fan of the roving German midfielder Ancelotti is willing to do business with Arsenal, but Marca believe it's a very different story where Di Maria is concerned.
Ancelotti has been forced to act as he ramps up preparations for next season at Madrid and an attempt to wrestle back La Liga from bitter rivals Atletico, particularly after wrapping up a £25m deal for Toni Kroos.
With Kroos arriving Ancelotti is not short of midfield options and for that reason Arsenal are increasingly confident that they can sign Khedira once his World Cup celebrations are over, even opening talks with his representatives over a €10m-a-year salary.
Ancelotti has even made it clear to Madrid chiefs that he would like a combative replacement and feels Chelsea midfielder Ramires fits the bill, but is dead set against selling Di Maria or strike star Karim Benzema.
United face snub
Di Maria's excellent performances over the last six months have led both Man United and PSG to openly court a move for one of the planet's most exciting playmakers, although albeit for an eye-watering price tag of €60m.
The 26-year-old was pivotal to Madrid's Champions League success though and is under contract at the Bernabeu until 2018, all adding weight to Ancelotti's stance that he is desperate to keep the clever midfielder and partner him with Kroos next season.
United had believed that PSG's sanctions with regard to Financial Fair Play had put them in a strong position to close the summer's biggest transfer not named Luis Suarez, but unless they match Madrid's lofty valuation the wing wizard will not be going anywhere.
Khedira looks Premier League-bound
Marca also quite intriguingly report that Khedira has received a major offer from Manchester United in the not-too distant past, but the Red Devils won't be going back in to rival Arsenal for his signature this summer.
Chelsea may still do just that though, with Jose Mourinho sharing a strong relationship with Khedira dating back to his time in charge of Los Blancos.
Arsenal fans now face a nervous wait to see if the can make a second marquee summer signing ahead of their closest title rivals, but from Madrid's side of things the deal is very much on.