Real Madrid manager Carlo Ancelotti is confident that midfielder Toni Kroos will extend his stay at the Santiago Bernabeu.

The 32-year-old has starred in the Blancos midfield since arriving from Bayern Munich in the summer of 2014, but he has now entered the final six months of his contract.

As a result, Kroos can begin talks with foreign clubs over a pre-contract agreement before leaving the Spanish and European champions on a free transfer in the summer.

Despite the additions of Eduardo Camavinga and Aurelien Tchouameni, and his uncertain contract situation, Kroos has remained a key member of Ancelotti's midfield this season.

The Germany international has supposedly been offered a contract extension by Los Blancos, although Manchester City are said to be considering a move should he opt to leave.

Nevertheless, Ancelotti is confident that Kroos will put pen to paper on fresh terms with Real Madrid, telling reporters at a press conference: "He's quite sure about it and will be very clear in the next month."

Back in November, Kroos - who celebrates his 33rd birthday on Tuesday - was questioned on his future with Real Madrid, and he confirmed his intentions to retire at the Bernabeu.

However, he stopped short of committing himself to a new contract, telling the press: "I'm very well, I feel good physically. I'm very relaxed about my [contract] renewal.

"I don't even know myself what will happen. We'll decide before March, so that you don't all get too nervous," he told reporters. "I'm going to retire here, what I don't know is when. There's nothing new to tell."

The former Bayern playmaker has now made 384 appearances for Real Madrid across all competitions, scoring 26 goals and setting up 87 more for the capital giants.

Kroos has provided one goal and four assists in 19 games for Ancelotti's team this season, starting five Champions League games and playing the full 90 in their 2-0 La Liga win over Real Valladolid on Friday.

The German has won a total of 18 major honours during his time at the Bernabeu, including four Champions League crowns, three La Liga championships and four Club World Cup honours.

Kroos's regular midfield partner Luka Modric could also depart Real Madrid as a free agent in the summer, but the Croatia veteran is expected to pen a short-term extension in the coming months.

Modric has supposedly rejected the chance to join Cristiano Ronaldo at Al-Nassr in order to stay at Real Madrid, who sit second in the La Liga table, only behind Barcelona on goal difference.

Ancelotti's men are next in action against Cacereno in the last 32 of the Copa del Rey on Tuesday evening.