El Mundo Deportivo believes all three of the Premier League clubs are planning bids for the Germany international, who is out of contract at the Bernabeu this summer. It has been reported that Liverpool, Chelsea and Arsenal are willing to offer as much as €15m.
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Would be a done deal
And the Spanish report claims it is almost certain that Real Madrid would accept such a fee for Khedira in January, as they risk losing him for nothing just six months later.
The contract situation puts Real Madrid in a difficult situation. They are not in a strong negotiating position, and having attempted to sell Khedira over the summer, it's thought the German midfielder is not keen on agreeing a new contract.
That would give him the pick of three Premier League clubs, with Liverpool and Arsenal in particular in need of a holding midfielder in Khedira's mould.
Arsene Wenger has been looking for an upgrade on Mathieu Flamini, as Mikel Arteta was found wanting in the position last season. William Carvalho and Lars Bender were reported targets, although neither deal materialised.
Liverpool or Chelsea
As for Liverpool and Chelsea, Jose Mourinho does not need Khedira after signing Nemanja Matic last January but he's a big fan of the World Cup winner having worked with him at the Bernabeu.
And with Oriol Romeu out on loan and John Obi Mikel out of favour, he could be an option.
Liverpool boss Brendan Rodgers has been using Steven Gerrard in the holding role for the Reds, but the skipper would benefit from a talent like Khedira alongside him, as good as Jordan Henderson has been.