Real now face the dilemma of whether to sell immediately this summer or allow Xabi to leave on a Bosman next year.
For what he's done for the club, Real's board favour allowing Xabi to remain next season, though they could be tempted by a serious offer.
A return to Liverpool has been mooted for the Spain international.
Can Xabi be tempted away? Would he swap Madrid for Liverpool? Give us your shout below...