The veteran midfielder's current deal expires at the end of the season.
Real Madrid coach Carlo Ancelotti has been clear that he would like to see Kroos extend his contract.
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And transfer expert Fabrizio Romano is now reporting: "EXCLUSIVE: Toni Kroos will stay and continue at Real Madrid as new one year deal until 2025 is set to be agreed!
"Direct talks between Kroos and Real on contract and it's now just a formality to sign, imminent.
"Super season again for Kroos at Real and also with Germany now."