Real Madrid have beaten Chelsea in the race to sign Toni Kroos after the Spanish side reached an agreement with Bayern Munich for their midfield star.
According to MARCA, Kroos will join the Champions League winners for a fee in the region of £25m and will agree a contract for around five years.
This would mean that Chelsea would have to search elsewhere in their attempts to find a potential suitor to line-up next to Fabregas next season.
The Blues were willing to propose a £7m-a-year deal to Kroos in a bid to lure him to Stamford Bridge. But his decision to join Madrid means Chelsea’s pursuit is now at an end.
The German champions made it clear they were not willing to improve on their offer and have now agreed to sell Kroos rather than risk losing him on a free transfer in 12 months time.
Chelsea, however, are expected to complete the signings of Atletico Madrid trio Diego Costa, Filipe Luis and Tiago in the coming weeks.
By Ollie Brown