Real Madrid and Bayern Munich are in advanced talks over a transfer for Toni Kroos, according to reports in Spain.
The 24-year-old midfielder -- who has only one year left on his contract at the Allianz Arena -- has rejected a new deal and the Bundesliga club are unwilling to improve their offer.
The Champions League winners have earmarked the signing of a midfielder as their main priority since doubts have been raised over Xabi Alonso's fitness, Asier Illarramendi has yet to prove himself and Sami Khedira's future has become increasingly uncertain – all have linked to the departure of Casemiro to Inter Milan.
And Kroos is on the top of Real boss Carlo Ancelotti's shopping list and could be available for just £20m, a bargain for a player considered one of the world's best in his position. Ancelotti's is also considering Chelsea star Ramires and Juventus's Arturo Vidal.
The German star's agent Volker Struth has however denied the reports claiming that Kroos star is still uncertain about his future: "There is no agreement or Real Madrid or any other team.
"Toni is currently playing the World Cup, which is the main priority now. Before the end of the tournament there will be nothing new about his future."
However, according to Marca, negotiations between Real and Bayern are advanced with the midfielder set to seal a five-year deal worth €5m annually at the Bernabeu. He currents earns at Bayern €4.5m.
Kroos, however, has not closed the door to a move away from the Bavarian club, after saying: "I am used to the rumours, but apart from that, everything is fine. As I said, right now I am focused on the World Cup as it is the most important," he told Sport1 Germany.
"I cannot say anything yet. It has been talked about the interest from Manchester United, Chelsea, Barcelona or Real Madrid. I will take a decision after the World Cup and I will communicate it to everyone."
It is thought Kroos has already settled on a Real move even though Chelsea have reportedly dangled €8.5m a year in front of the midfielder and United have also expressed their interest.