Sport says while coach Carlo Ancelotti would be happy to keep Xabi for another year, he accepts that Real will sell the midfielder should a realistic offer arrive.
Xabi's relationship with some players inside the Real locker room isn't the best, though he retains the respect of all his teammates.
The veteran has openly spoken of his love for former club Liverpool and a return has been mooted since the end of last season.
Xabi also has made no secret of a wish to finish his career at hometown club Real Sociedad, though sees that prospect still two to three years away.
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