Madrid, Dec 27 (IANS): Arsenal, Chelsea and Bayern Munich have been dealt a blow in their chase for Sami Khedira's signature after the German World Cup winner revealed he is hoping to sign a new contract at Real Madrid.

Khedira's current contract at the Champions League holders expires in the summer and clubs outside of Spain are free to offer him a deal from Jan 1, reports dailymail.co.uk.

With the prospect of losing Khedira for nothing in the summer, Real have considered cashing in in January but the mid-fielder said that he is hopeful of staying in Madrid.

Asked Friday if he wanted to stay at Real, Khedira said: "If we can reach a solution, I’ll be very happy."

Khedira has struggled with injuries over the past season and a half and now has Luka Modric and Germany teammate Toni Kroos ahead of him in the pecking order at the Santiago Bernabeu.

With Spanish youngsters Isco and Asier Illarramendi highly thought of by Real, Khedira knows he has a fight on to get a game. But he is relishing the challenge.

"I’m confident that soon I will get more of a chance to play. There are other players in my position but that competition is healthy."