That is probably German's newspapers attempt to inflate the price for Werder more than anythingelse. I even suspect one of Werder's employee to leek such information.
No team will be stupid to spend that much when you can wait for sixth month and snap him up for free. 29 year old FA is more enticing than 28+ transfer sum. Also, Klose understands he is able to fetch far more in terms of his salary doing that way, since teams are not obliged to pay any sum to Werder, I suspect him to wait patiently on the development and if nothing happens he would gladly wait till Dec and get hefty pay raise being it Werder, Juve, ManUre, Barca etc.
Were has very little leverage in this deal, just as Roma was with Cassano. I do believe 17m for Klose is a fair market value but the terms likely to be dictated by the buyers not a seller unless one or two team like Chelski or Real that doesnt give sh!t about the money involved.