Chelsea are reportedly in a battle with Premier League rival Manchester City and Spanish giants Real Madrid for the transfer of Portugal World Cup star Rafael Leao.

According to Florian Plettenberg of Sky Sports Germany, Italian giants AC Milan are only willing to accept an offer of €150million for the transfer of the 23 year old exciting winger despite his contract expiring in 2024.

AC Milan have been keen on extending his contract but Leao is unhappy with the contract offer from the Italian giants.

Chelsea reportedly held talks about signing Leao in Qatar and reportedly offered €70million for his transfer but it was turned down by AC Milan with the Italian club demanding his release clause of €150million.

Chelsea have received a huge boost in the pursuit of Leao as it has now been revealed the head of the Portugal international has been turned by Chelsea’s interest.

AC Milan are desperate to tie Leao down to a new deal as he is set to enter the final 18 months of his agreement, which is worth £28,000-per-week, at the turn of the year.

However, the winger has stalled on signing a new AC Milan contract amid interest from Chelsea.

Simon Phillips told GIVEMESPORT: “He’s been quite keen to hold off signing a new contract with the interest from other clubs, especially Chelsea because his head has been turned by that.

“He’s not wanted to rush anything with his contract talks.”