Real Madrid boss Carlo Ancelotti has insisted that midfielder Sami Khedira will not be leaving the club in January.

Speculation has mounted that Premier League giants Arsenal, Chelsea and Manchester United will battle to secure the German's signature in the winter transfer window.

However, Ancelotti claims that Khedira - whose contract expires in the summer - will extend his current deal or leave on a Bosman.

"We still have until June to renew his contract," the Italian is quoted as saying by Goal.com.

"I think the club intends to renew the deal and if he does not want to then he will remain here until to the end of season."

The 27-year-old has fallen down the pecking order in the Spanish capital following the arrival of Germany teammate Toni Kroos from Bayern Munich.