Not completely out of th question Colin /Loki.. and to be honest, while he's not a midfiel monster, or destroyer like his partner Mascherano was, he is a very effective holding midfielder.
I'm not ready to start wracking my brain with all the summer news and transfers (nor take the abuse despite getting a few inside scoops correct), but this one has decent legs. Xabi has still turned down the offer to negotiate his new contract, and if Fail Madrid, Fails to win the CL, I think he'd be open to considering the move, especially since I had read in Spanish, he would be willing to do so at some point, even if it meant taking a significant pay decrease to come home. Problem will be the excessive price tag Madrid would slap on him.. For as great as he is, getting on in age, it would be hard to justify 15-20M on him, when we are serious players in that realm for Christian Eriksen, who is a world class talent, and more than ready/experienced at only 21.
If Xabi handed in a request, which I just don't see him doing, we could have a better shot.