English powerhouse Arsenal is reportedly closing in on German midfielder midfielder Sami Khedira from Real Madrid after the World Cup winning playmaker was dropped in the Galacticos' 1-1 draw with Atletico Madrid in Tuesday's SuperCopa Espana match at Santiago Bernabéu.

Spanish newspaper Marca reported that Real Madrid's top-brass has already decided to dispose Khedira following their acquisitions of two top-notch midfielders this offseason: Colombia's James Rodriguez and Germany's Toni Kross.

Real Madrid has been planning to unload two more players from their star-studded lineup to stay under the FIFA financial fair play rule. Many football analysts believed Angel di Maria and Khedira are the ones Madrid is planning to unload.

Arsenal has been the favourites to land Khedira, despite Chelsea's bid to snatch the 27-year old playmaker. In fact, there are speculations that Khedira could be availed at a bargain price, allowing Arsenal to add another marquee player to their roster of elite footballers.

"This source reiterates Chelsea's continued interest in the German international but it's Arsenal who have most frequently been linked with the strong midfielder in recent weeks and some sources claim that Arsene Wenger could snap up the former Stuttgart man at a reduced price as Real Madrid seek to sell one or two big names so as to balance their books."

According to sources, Khedira prefers to play for Arsenal because of the chance to play again with former Real Madrid teammate and compatriot Mesut Ozil.

"A number of sides are said to be hot on the heels of the former Stuttgart man but Khedira is thought to favour a move to the Emirates Stadium, not least because he is hoping to team up with his good friend, and national team colleague, Mesut Ozil at the north London outfit," according to Caught Offside.

The Gunners have been on the look for talents like William Carvalho of Sportinfg Lisbon and Morgan Schneiderlin of Southampton, but negotiations to bring these players to Emirates Stadium have not gained significant development.

Should Arsenal land Khedira, the Gunners will have a dynamic midfielder with the ability to cover a lot of ground and a has a superb midrange shooting.