The World Cup winner is out of contract at the end of the season, and is said to have recently turned down a new contract with the European champions.
Khedira joined Real Madrid from Stuttgart for a reported €14 Million back in 2010, but has fallen down the pecking order since the arrival of Toni Kroos and James Rodriguez this summer, as well as Lucas Silva in the previous window.
The German is heavily linked with a move to the Premier League, with a host of clubs believed to be interested, but is now said to be the subject of a two-way battle between Schalke 04 and Liverpool.
The Anfield club are on the look-out for a long-term replacement for Sami Khedira this summer, with their captain joining MLS side LA Galaxy at the end of the season.
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