Arsenal captain Cesc Fabregas could move to Real Madrid for a knockdown £16 million next season.

The News of the World says the Gunners midfielder is a top target for both Spanish giants and, under FIFA rules, could walk out next January unless boss Arsene Wenger persuades him to sign a new deal this summer.

And Fabregas said: "I would not close the door on anybody. Every player evaluates how things have gone and thinks about whether he is happy or whether he can improve his situation.

"I can't control what people say about me but it's a huge honour two of the biggest clubs in football are talking about me."

The Spaniard's £55,000-a-week Arsenal contract expires in 2014 but under FIFA rules, he could buy it out in October when he has served three years.

That would allow him to move in the January 2010 transfer window for a cut-price £16million.