The 23-year-old playmaker has become an important part of Los Blancos since moving from Werder Bremen in 2010, and has declared his team's desire to emerge victorious in all competitions.
“The objective at Madrid is always the same: to collect every trophy possible," he told Bild. "Both [La Liga and Champions League] are important, but the Champions League is a competition that I have not won yet.
“This is my third season at Real Madrid. When I came, few people thought that I could achieve what I have achieved so far. Now that I have won the league and the cup, I'm sure the next step is to come.
"Winning the league last season has made us even stronger. We are prepared."
Real Madrid won the Primera Division last season, but were eliminated from the Champions League by Bayern Munich and from the Copa del Rey by Barcelona.