Bayern Munich have confirmed that they are in talks with Real Madrid over the transfer of Toni Kroos.

Reports from Spain suggested that Toni Kroos has turned down a final offer from Bayern Munich in favour of a move to Real Madrid after the World Cup, and the German club has now confirmed that they are in talks with the reigning European champions over the transfer of Kroos.

Kroos, whose current contract at Bayern Munich will expire in 2015, has been in talks with the German club over an extension but have have failed to reach an agreement. Reports suggest that Kroos has turned down Bayern’s latest offer in favour of a move away from the Allianz Arena.

Carlo Ancelotti is believed to be a big admirer of the German midfielder, who was a key member of the World Cup winning squad in Brazil, and sees him as the perfect long-term replacement for Xabi Alonso, whose recent performances, both for club and country has drawn a lot of criticism. Ancelotti also remains unconvinced by the development of Asier Illaramendi and feels the addition of Kroos will help them in wrestling back the league title from Atletico Madrid next season.

Spanish newspaper Marca initially reported that a deal of €25 million has been agreed between Bayern Munich and Real Madrid over the transfer of Toni Kroos and the German midfielder will sign a five-year contract worth €5 million per year.

According to them Kroos rejected a final offer from Bayern Munich in favour of joining Real Madrid and has also turned down a massive offer from English club Chelsea, who reportedly offered him a bigger contract than Real Madrid, as he wants to move to Spain.

Bayern Munich president Karl-Heinz Rummenigge has now confirmed that both are clubs are in talks regarding the possible transfer, although he insisted that nothing is official yet.

“Nothing is official yet, however he could be sold for a certain fee.

I can confirm that Toni and us are in talks with Real Madrid.” – Rummenigge said.

He also made it clear that Bayern are not willing to sell Kroos, but have to consider the option since they failed to negotiate an extension as the midfielder enters the final year of his contract.

“It is clear we do not want to lose the player for free next year. We have a financial responsibility towards our club.

“Let me put it this way, we were not able to achieve (a renewal). And then you can’t exclude a transfer after the World Cup.

“It is possible this will happen.” – He added.

Kroos has himself publicly confirmed this move after Germany’s World Cup triumph against Argentina in the final. This will also mean the end of Sami Khedira’s career at Real Madrid, who has been linked with Arsenal and Chelsea.