The future of Real Madrid midfielder Sami Khedira has been the subject of transfer speculation since it was learned the Spanish club will not renew the German international’s contract.

Khedira’s current deal is set to expire at the end of the season, and the player has been linked with moves to Bayern Munich, Arsenal and Liverpool over the past several months.

But the German publication Sport BILD is now reporting that Schalke 04 have entered the race for the 27-year-old midfielder – who hopes to return to his native country to finish his career – with insiders tipping the Bundesliga club as favorites to land the talented player.

Khedira is free to talk to other clubs (due to his expiring contract) and Schalke officials are taking advantage of their Champions League Round of 16 tie against Real Madrid to hold face-to-face negotiations with the player. Initial contact has already been made, with more talks planned next week when Schalke travel to Madrid for the second leg of their knockout stage encounter.

It is believed that Bayern Munich and Arsenal have backed away from their interest in Khedira, due to the player’s ongoing injury issues. The midfielder has been sidelined since damaging his hamstring during Real Madrid’s 4-0 derby day defeat to Atletico Madrid.

Even when Khedira returns to 100% fitness he isn’t expected to feature in Carlo Ancelotti’s squad the remainder of the season.

The manager now boasts a wealth of options in the center of the pitch, with January-signing Lucas Silva debuting to rave reviews and Toni Kroos continuing to shoulder the heavy load in Madrid’s midfield.

Aesir Illarramendi is favored above Khedira. While Isco continues to flourish in his new role, and Luka Modric is nearing a return to match fitness after a three month spell on the sidelines.