Real Madrid boss Carlo Ancelotti has claimed Arsenal and Chelsea target Sami Khedira is going to stay at Santiago Bernabeu until the end of the season even though his contract is due to expire in the summer.

The German international's future at the Champions League winners has been in doubt after he rejected a renewal offer to commit his future to the La Liga side at the end of last season.

Recent reports in Spain claimed that Los Blancos were considering selling him during the January transfer window in order to avoiding losing him for free at the end of the season – while earmarking Brazilian starlet Lucas Silva as his replacement.

However, Ancelotti has now expressed his intention to keep the player until the end of the season, and will try to commit his long-term future to the club with a new contract.

"We have until June to reach an agreement with him. If he wants to sign an extension, the club will renew him. If not, he will leave the team at the end of the season," Ancelotti said, according to AS.

Khedira returned to Real Madrid training on Wednesday 15 October after suffering a knee injury in September while on international duty with Germany.

Ancelotti says he expects Khedira to be fully fit sooner rather than later as he is going to be an important player in his line-up.

"Khedira has come back really well, he trained with the squad and he's ready to play. Of course he's not in optimal condition after missing the last 40 days, but he's an important player for us," he added.

Arsenal and Chelsea were reportedly monitoring the situation, considering to take advantage of his contract situation to secure a cut-price deal in January.

However, it looks as if the Premier League giants will have to wait until the end of the season to fight for his services as a free agent.

Jose Mourinho enjoyed a great relationship with the German international after signing him for Real Madrid during his time in La Liga.

But Arsene Wenger is reportedly considering to use German compatriots Mesut Ozil and Per Mertesacker to persuade the Real Madrid star to snub his former boss and move instead to the Emirates Stadium.