The German midfielder is set for a Real Madrid exit, but he won't be heading to London.

London duo Arsenal and Chelsea have been dealt a huge blow in the transfer marker as German target Sami Khedira has reportedly signed a pre-contract with Bundesliga giants Germany.

According to radio station Cadena Ser (per London Evening Standard), Pep Guardiola has won the battle to land the Real Madrid ace's signature, and will be handed a substantial salary package by the Bavarians once completing his move to the Allianz Arena.

Sami Khedira signs pre-contract with Bayern

Despite claims from from Italian manager Carlo Ancelotti that the 10-time Champions League winners are keen on keeping the 27-year-old, Khedira looks set to cut all ties with the club he joined back in 2010.

"The club wants him (Khedira) to sign a contract extension," the Merengues boss stated. "We consider him a reliable player, who is serious and professional."

Khedira, who's deal with Los Blancos comes to an end next summer, has turned down interest from the English Premier League to follow suit of former Real Madrid midfielder Xabi Alonso, who left the Bernabeu for die Roten last summer.

Seeing his first-team opportunities diminish due to compatriot Toni Kroos' arrival, the former Stuttgart man was highly sought after by Arsene Wenger and Jose Mourinho, whilst also being linked with a move to Louis Van Gaal's Manchester United. 

The World Cup winner was heavily tipped with an Emirates Stadium switch, where he would have linked up with fellow die Mannschaft stars Lukas Podolski, Per Mertesacker, and former Real Madrid team-mate Mesut Ozil.

Mertesacker, who was credited with helping lure Ozil to north London, admitted he has worked his magic in order to see Khedira join Arsenal, saying in a question and answer session:

"I'm up to more quality Germans to the club. [Mesut] Ozil and I spoke with Khedira a few times to join Arsenal. His contract is up next summer."