The clouds on the horizon have lifted. In a whirlwind last 24 hours, there has been a major breakthrough, cutting through the doom and gloom that had begun to surround the issue of Xabi Alonso's future and causing a seismic shift in the mood.

MARCA.com can reveal that Xabi has more or less made his mind up and has instructed his friend and agent, Iñaki Ibañez, to begin negotiating a new contract. In other words, his first choice is to stay at the Bernabéu.

Talks on a new deal won't begin until after 6th January, which is a public holiday in Spain. The issues up for discussion will be the length of the contract and his wage packet. The 32-year-old will want a minimum two-year extension, with a possible optional third year related to his performances and fitness. As for the financials, a salary of around €7 million a season is likely.

There can be no doubting Real Madrid's eagerness to tie Alonso down. Florentino Pérez himself told the midfielder as much when they last spoke, around a month ago.

'Los Blancos' are convinced that Alonso won't find the same levels of respect and affection he receives at the Bernabéu anywhere else. For instance, having still not fully shaken off his groin injury, Xabi will be given a say in everything related to his fitness. He will be offered free rein to determine his regime, when he needs a break and when to play on, together with the coaching and medical staff and depending on the team's needs.