Arsenal could face competition for Sami Khedira after reports emerged that Bayern Munich want to sign the World Cup winner -- but on a free transfer next season.
Khedira has found himself surplus to requirements at Madrid after Los Blancos signed the German's compatriot Toni Kroos from Bayern.
He had attracted interest from Chelsea -- whose manager Jose Mourinho knows Khedira from his time at the Bernabeu -- and Arsenal with the north London club believed to have stolen a march on their London rivals.
The 27-year-old had reportedly lowered his wage demands to help force through a deal to the Gunners, who were reluctant to meet his £150,000-a week demands, which would have made him the club's highest earner above Alexis Sanchez and Mesut Ozil.
But according to Spanish daily sport newspaper Marca, Bayern are now waiting in the wings to take Khedira to the Allianz Arena and hope to take full advantage of his looming contract expiration and sign him for free next summer.
Arsene Wenger has not been afraid to splash Arsenal's huge cash reserves this summer, plucking Sanchez, Mathieu Debuchy, David Ospina and Southampton youngster Calum Chambers from their respective clubs in a £65m spending spree.
Khedira would add to Wenger's World Cup-wining German trio of defender Per Mertesacker and forwards Ozil and Lukas Podolski.
Indeed, Podolski has stated how he would like to link up with Khedira in an Arsenal shirt.
"I didn't have to [try to convince Khedira to join Arsenal]," he told Sport Bild. "Sami knows how much fun he could have with me, Mesut [Ozil] and Per [Mertesacker] at Arsenal. We had a great time together at the World Cup and I would like it very much if he comes to London."