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Let 
$G$ be an algebraic real reductive group and 
$Z$ a real spherical 
$G$-variety, that is, it admits an open orbit for a minimal parabolic subgroup 
$P$. We prove a local structure theorem for 
$Z$. In the simplest case where 
$Z$ is homogeneous, the theorem provides an isomorphism of the open 
$P$-orbit with a bundle 
$Q\times _{L}S$. Here 
$Q$ is a parabolic subgroup with Levi decomposition 
$L\ltimes U$, and 
$S$ is a homogeneous space for a quotient 
$D=L/L_{n}$ of 
$L$, where 
$L_{n}\subseteq L$ is normal, such that 
$D$ is compact modulo center.
