Chelsea 'miss out on signing Rafael Leao as AC Milan reject £69m offer'

Chelsea have been dealt another transfer blow after AC Milan blocked their move to sign striker Rafael Leao, according to reports.

The Blues have been in talks with their Italian counterparts in a bid to thrash out a deal, and it is understood that they offered the Serie A champions €80m (69m) for Leao in their latest round of discussions.

Milan technical director Paulo Maldini is not happy with this proposal, though, and wants Chelsea to pay Leao's €150m (£130m) release clause in full, as reported by The Times journalist Duncan Castles.

With Chelsea unwilling to match Milan's valuation, Leao is set to stay at the Italian club for now.

This will be music to the ears of Milan fans given the important role Leao played in the side's title win last term. The Portugal international scored 11 league goals and was voted Serie A MVP as Milan pipped local rivals Inter Milan to top spot.

However, it is a fresh setback for Chelsea after two other deals fell through for the west London outfit in a matter of hours.

Thomas Tuchel's side looked on course to sign Russian midfielder Arsen Zakharyan from Dinamo Moscow for £12.6m but this transfer was blocked by British sanctions.

They also had their eyes set on Ajax's holding midfielder Edson Alvarez, and launched a £43m bid to try to secure his services.

Alvarez was keen on a switch to Stamford Bridge, and even refused to train with his Ajax team-mates in an attempt to force through a move.

However, the Dutch giants reportedly sat him down on Thursday and informed him that he would be staying at the club as they feel they have lost too many players, and they will be unable to find a replacement for Alvarez due to the transfer window having already closed in the Netherlands.

It has been a frustrating final day for Chelsea so far, although they do look set to sign Barcelona striker Pierre-Emerick Aubameyang, with Marcos Alonso going in the opposite direction.

Aubameyang's arrival would take their spending beyond the £270m mark since Todd Boehly became the club's new owner earlier this summer.