The German international midfielder is reportedly a target for Arsenal, Manchester United, Chelsea and Liverpool.
But talk of a return to his homeland with Schalke has been gathering pace for a while.
We've spoken several times.
Schalke president Clemens Tonnies
And the Bundesliga club have now confirmed that they are in talks with the player over a move.
Khedira is almost certain to leave Real in the summer after admitting he was keen on a fresh challenge when his contract expires.
And Schalke president Clemens Tonnies says only the finer details now need to be sorted before a move can be confirmed.
GETTY
Sami Khedira is preparing to leave Real Madrid
He told Sport1: "I have a high opinion of Sami Khedira because he's a leader who can improve the team.
"He has an incredible reputation with the national team. We've spoken several times.
"Now, Horst Heldt [Schalke's sporting director] and Khedira's agent must find a satisfactory solution."
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