Real Madrid head coach Carlo Ancelotti has confirmed that the club are in discussions with Luka Modric and Toni Kroos over new contracts at the club.

The duo only have deals with Los Blancos until the end of the campaign, and there has been widespread speculation surrounding their futures in recent months.

Modric is believed to be attracting interest from the MLS and Saudi Arabia, while Kroos has previously said that he is considering hanging up his boots altogether when his deal expires at the end of June.

However, Ancelotti has said that the club are speaking with both players about new contracts.

"There is progress because they are talking and in the end they are going to look for a solution," Ancelotti told reporters during his press conference to preview Saturday's clash with Villarreal.

Karim Benzema also only has a deal with Real Madrid until the end of June, but the club are working to sign the centre-forward to a new contract.

"I see the three of them (Benzema, Modric and Kroos) as always. They can have their best and worst moments during a season but that's quite normal," Ancelotti added on Friday.

"We have to evaluate players not by age but by what they actually do and you can think that the three of them don't have the energy of the youngsters but the way they handle games and the experience they have you can't buy in any market in the world.

"I think they will continue but we will have to think about when they stop because it will happen. Maybe they don't have the physique of young people, but while age takes away some things, it gives you others."

Benzema has scored hat-tricks in his last two appearances against Real Valladolid and Barcelona, with the 35-year-old now on 25 goals and six assists in 31 matches this season.

Modric has also again been a key player for Los Blancos, featuring on 38 occasions in all competitions, scoring six goals and registering six assists in the process.

Meanwhile, Kroos has two goals and five assists in 39 appearances this term, with the German remaining an important figure for the team.

Benzema, Modric and Kroos all played important roles in Wednesday's 4-0 victory over Barcelona, which saw Real Madrid book their spot in the final of the Copa del Rey.

The trio are also in the squad for Saturday's clash with Villarreal, although there is a chance that they could be rested from the start ahead of next week's Champions League quarter-final first leg with Chelsea. body check tags ::