Arsenal target Sami Khedira to stay at Real Madrid

Real Madrid midfielder Sami Khedira will stay at the Bernabeu this season, according to coach Carlo Ancelotti.

The German World Cup winner, 27, has been linked with moves to Arsenal or Bayern Munich after Ancelotti said he had rejected a new contract.

"The issue with Khedira has also been resolved. He's staying and we're happy that's the case," said the Italian.

Ancelotti also revealed winger Angel Di Maria, 26, has said goodbye ahead of a mooted move to Manchester United.

European champions Real have already signed Colombian playmaker James Rodriguez, for a fee that could reach £71m, and German midfielder Toni Kroos from Bayern Munich.