Arsenal is close to a nearly $40 million transfer to acquire Sami Khedira from Real Madrid.

Chelsea is also interested in Khedria, but a report out of Spain indicates an agreement is already in place.

Khedira and Real Madrid were discussing a new contract, but those talks broke down and they're selling him now instead of letting him leave for free next summer.

Khedira would join former Real Madrid teammate and current fellow German National Mesus Özil at Arsenal.

Arsenal has prioritzed acquiring a defensive midfielder this summer.