Stuttgart director Jochen Schneider says Real Madrid have confirmed their interest in Germany international midfielder Sami Khedira.
The 23-year-old defensive midfielder won rave reviews for his performances in Germany's successful World Cup finals this summer.
Only last week Stuttgart quashed reports Khedira could be set to join the Spanish giants, but now they have officially changed their position.
With Khedira now in the final year of his contract Schneider has hinted a deal could be brokered rather than losing him for free next summer.
"Months ago we have tried to thrash out a contract extension with (Khedira), we did not succeed," Schneider told kicker-Sportmagazin.
"And now Real Madrid has officially indicated their interest in him."
Khedira insists nothing has been finalised with Real, although he has admitted that he is hugely flattered to be link with the Santiago Bernabeu side.
"There is no agreement and there is also no decision on my future," he explained. "I am delighted about such a club being interested in my services, but first of all I need to think things over.
"I was having a very fairly and square chat with (manager) Christian Gross and Schneider. The manager was very firm on telling me how he would like to carry on working with me in the future.
"This was impressive. For now I am going on holiday and afterwards I am going to get back on the table discussing the future."