Arsenal and Real Madrid have agreed upon a £20 million ($34 million) transfer fee for Sami Khedria, according to reports from Spain.

Khedira and Arsenal continue to discuss terms of his contract.

Khedira has just one season remaining on his contract with Real Madrid.

Lukas Podolski voiced his desire for Khedira to join him at Arsenal during Germany’s World Cup homecoming and he would also link up with compatriots Per Mertesacker and Mesut Ozil in north London.