The Daily Star's Gary Jones claims Arsenal are planning a deadline-day move for the German international, similar to the one they made for Mesut Ozil in 2013. According to Jones, Wenger hopes such a move would help lower his price tag, making his massive wages less of a burden on the club.
Wenger insists the Gunners are set in midfield, per Jones:
"I don’t know who has put him on the market," he said. "We were never close to signing him, because Jack Wilshere has come back fit and in midfield we have offensive midfielders, we have box-to-box players, we have quite a few."
Rumours Arsenal had approached the player only to be shot down by his wage demands were also false, according to Bleacher Report's Guillem Balague, although he wouldn't rule out the possibility of that changing in the future:
Whether Wenger is planning another audacious swoop or not is irrelevant at this point: In either scenario, the Gunners can in no way benefit from the continued speculation.
Arsenal has looked very strong during the pre-season, but if there's one need fans could still identify in the squad, it's at the holding midfielder spot. New captain Mikel Arteta looked solid during the Community Shield win over Manchester City, but depth could be an issue.
Then again, it doesn't have to be. Jack Wilshere made a strong impression against City, with some suggesting he could make the conversion to a more defensive role. New signing Calum Chambers made an even bigger impression, and he could slide one row forward if needed.
The Gunners could surely use help at the position, but the situation doesn't look as dire as it did just a few weeks ago. Whereas Khedira looked like a need at one point during the summer window, he now looks more like an asset.
A healthy Khedira would undoubtedly make this team better. The World Cup winner adds a dimension of physicality in the centre of the pitch, and his vision and positioning are top-notch.
With Khedira, Arsenal would likely put themselves among the title favourites, on the level of Chelsea and Manchester City. If a transfer is financially viable, it would still be a great idea to get it done during the 2014 transfer window.
According to Mundo Deportivo (h/t to Football-Espana), Jose Mourinho has already told Khedira there would be a spot for him at Stamford Bridge at the conclusion of the 2014-15 season, when his contract runs out.
There will be competition for the midfielder's services, so the sooner the Gunners can conclude a potential transfer, the better. Counting on another transfer swoop similar to Ozil's is dangerous, as Real wouldn't have to budge on the fee too much—there are other parties interested as well.
Knowing all of that, an open courtship of the 27-year-old simply isn't a good idea. If Wenger is still planning on a move, he'll only create a market and drive up the price by allowing speculation to persist.
If he isn't planning on doing anything, the continued links could impact the confidence of the players he plans to rely on in 2014-15, particularly the two youngsters he would have to rely on should anything happen to Arteta.
The simple "no" from Wenger doesn't tell us anything about his plans, although at this point, it doesn't look like the Gunners have the need to overspend on the position. But the speculation surrounding Khedira has grown silent in the past few days, and in the long run, that can only help the club.