He was also rumoured to be a target for Manchester United but according to The Guardian the midfielder is going nowhere.
The German international was believed to have turned down a contract offer to stay at the Bernabeu.
However Ancelotti has now said that “The issue with Khedira has also been resolved. He’s staying and we’re happy that’s the case.”
Speculation over his Madrid future increased recently as he was left out of Real’s squads for both legs of their Spanish Supercopa defeat to Atlético Madrid.
He was even pictured in Germany, fuelling speculation that Khedira was set for Bayern Munich, however it later turned out that he was watching his brother Rani play for RB Leipzig.
The news of Khedira’s prolonged stay in Spain comes as a huge blow for Arsene Wenger and Louis van Gaal who have been on the lookout for some midfield steel all summer.
Manchester United and Arsenal fans. You both need to find some midfield steel this summer. But who would be the best man for your club? Let us know your thoughts below.