Real Madrid boss Carlo Ancelotti has insisted that Sami Khedira will not leave the club this summer.

The German international has been strongly linked with a move away from the Bernabeu in recent weeks, with his contract due to expire next June.

However, Ancelotti has said that the midfielder "is happy" in Madrid and will not leave.

"Khedira is happy here and he is staying. The matter is resolved and he stays at Real Madrid," Ancelotti told reporters at a press conference on Sunday.

Napoli and Arsenal have both been credited with an interest in the World Cup winner.