However, Balague has also suggested that Los Blancos would be prepared to sell the German international should talks over a new deal continue to break down.
Khedira, who missed the second half of last season with a serious knee injury, has been strongly linked with a move to Arsenal in the last couple of days.
Balague has said that such talk is not wide of the mark, but that Madrid are keen on committing the combative midfielder to a new contract.
"Khedira: RM want to renew his contract (1 year left). If he doesn't they will sell him. So far his agent is not in a rush 2 meet club," Balague tweeted.
Chelsea have also been linked with a move.