Stuttgart have denied a report in Marca that midfielder Sami Khedira has agreed a €10 million transfer to Real Madrid.
Marca stated the Germany international was spotted at Real's Valdebebas training complex on Wednesday and that the transfer could be formally announced in the coming hours.
Khedira, 23, formed an excellent partnership with Bastian Schweinsteiger in the centre of Germany's midfield in South Africa, with his industrious displays drawing widespread praise, as well as interest from rival clubs.
However, the Bundesliga club have denied a deal is imminent and revealed they are yet to have any discussions with their Spanish counterparts.
"There is still no contact between Real Madrid and VfB Stuttgart," spokesman Oliver Schraft told Deutsche Presseagentur. "That the transfer will be finalised in the next few hours is something we can clearly rule out."
Khedira's representative Jorg Neblung said: "There will be no big news regarding Sami in the next two to three weeks, as Sami is on holiday over these weeks."
Khedira is out of contract at the end of the coming season and Stuttgart coach Christian Gross recently admitted the club will struggle to retain the midfielder.
"It is foolish not to think about a transfer when Sami's contract ends in June 2011," he told Kicker. "Also, if we want to strengthen with new players we need money. We must consider the option of selling, although it would be a shame to lose him."
Madrid-based daily AS also reports on Thursday morning that the agent of Khedira's international colleague Schweinsteiger has instructed Bayern Munich to listen to any offers from Real for his client.