Watzke admits Dortmund team will split up as Kagawa talks reach a halt

Borussia Dortmund CEO Hans-Joachim Watzke has revealed that talks with Shinji Kagawa over a contract extension have broken down, and admitted that his side will likely lose some of their stars in the coming years.

The 52-year-old confirmed discussions between sporting director Michael Zorc and Kagawa, whose contract is set to expire in 2013, but added that they have produced no conclusive result.

"We must decide together how to solve the situation," he told Sport-Bild, speaking of "dampened optimism" over a new deal.

However, Watzke admitted that he cannot expect BVB to retain all their stars in the long-term.

"We must clearly recognise that this team is not going to play together for the next five years, as it is."

Dortmund were forced to sell midfielder Nuri Sahin last summer after Real Madrid met his reported €10 million buy-out clause. Recently, stars Mario Gotze, Mats Hummels and Robert Lewandowski have reportedly attracted interest from other clubs.