The German midfielder helped his country claim victory at the World Cup in Brazil, although was ruled out of the final against through injury - and now attention has turned to his future.
According to reports in Spain, Khedira will be on the move this summer having turned down a two year contract at the Bernabeu. Real Madrid are willing to do business as they look to fund their own summer splurge, and will likely accept an offer in the region of £23.5 million.
Arsenal and Chelsea are both reportedly in the race to sign the dynamic midfielder, as are Manchester United, but it is the Gunners who had seemed closer to sealing a deal. It was claimed yesterday that Arsenal had been locked in talks with the Real Madrid man over a potential transfer.
However talks appear to have not gone particularly well, and the Mirror say that Arsenal are about to end negotiations having refused to agree to Khedira's £150,000-per-week wage demands, before bonuses which could well take that figure closer to £200,000-per-week.
That could well open up the door for Chelsea or indeed Manchester United to pounce, with both clubs unlikely to baulk at paying such wages. Arsenal have been splashing the cash recently, snapping up Alexis Sanchez from Barcelona in a deal worth around £32 million.
Manchester United and Chelsea swoop?
The Chilean reportedly put pen to paper on a deal worth around £130,000-per-week to make him the club's top earner alongside the likes of Mesut Ozil and Aaron Ramsey, so it is unlikely that the Gunners would be unable to afford such wages and instead must come down to how highly they rate him.
Despite their problems with Khedira, Arsenal look set to be active in the transfer market this summer, and with a deal for Newcastle's Mathieu Debuchy close, they could then land Colombian David Ospina and Atletico Madrid's Javier Manquillo. Other reports are suggesting that Arsenal boss Arsene Wenger will return to long-term target Lars Bender instead of Khedira.
Chelsea could in turn look to Khedira as a cheaper alternative to Paul Pogba, who could cost up to £60 million, while Manchester United may eye the German if their swoop for Arturo Vidal falls through.