Real Madrid transfer news: Diego Lopez out, Arsenal target could join Chelsea for free

All the latest transfer news from the Santiago Bernabeu.

Arsenal target Sami Khedira has been linked with a free transfer move to Chelsea next summer.

The Real Madrid star has long been linked with a move to the Gunners as they bid to strengthen their midfield and a reporter £24 million deal looked on the cards.

The 27-year-old’s former boss Jose Mourinho, however, remains a keen admirer and has also shown an interest in bringing Khedira to the Premier League.

The Daily Star last night claimed the German international could wind down his contract with Real Madrid this season and join the Blues on a free next summer on a £150,000-a-week deal.

Should Khedira decide to leave the Santiago Bernabeu, the Madrid giants have a back-up plan in place as they keep tabs on Brazilian international midfielder Luiz Gustavo.

The former Arsenal target currently plies his trade at Bundesliga outfit Wolfsburg though he remains keen on a move to Los Blancos, Spanish newspaper El Confidencial reports.

The final big news to come out of Madrid is Carlo Ancelotti’s decision to stick with Iker Casillas over goalkeeper Diego Lopez, pushing the latter towards the exit door.

32-year-old Lopez is said to be close to joining Monaco on a three-year deal but the French outfit may face late competition from Serie A side Napoli.

Register for HITC Sport - Daily Dispatch