Chelsea will not permanently sign Jadon Sancho, opting to pay Manchester United a £5 million penalty instead.
The decision comes despite Sancho’s role in Chelsea’s Europa Conference League win.
Sancho, 25, joined Chelsea on loan last summer after falling out with former Manchester United manager Erik ten Hag.
Although Chelsea had an obligation to buy Sancho if they finished above 14th in the Premier League, negotiations for a permanent contract, which would have involved a pay cut for the player, reportedly failed.
Sancho has one year left on his Manchester United contract, with the club still owing £17 million to Borussia Dortmund.
Meanwhile, Chelsea are reportedly interested in AC Milan and France goalkeeper Mike Maignan, who is said to be open to a move.