Chelsea are reportedly still determined to sign Rafael Leao and are preparing to return for the AC Milan attacker "in the coming months".
The Blues were linked with the 23-year-old in the latter stages of the summer transfer window, but Milan are believed to have made it clear that he would not be available for under his release clause of €150m (£130m).
According to Italian journalist Gianluca di Marzio, Milan "sent back" an offer from Chelsea in the final moments of the summer market, with the Serie A club's directors Paolo Maldini and Frederic Massara rejecting the bid.
"In a market where all clubs have to reckon with costs and budgets to keep in order, AC Milan have sent back a €70m (£61.4m)-€80m (£70.2m) offer presented by Chelsea," Di Marzio told Tuttomercatoweb.
"In the last days of the market, in fact, the English club tried to make the Rossoneri 'waver' by putting a very rich offer on the table: a proposal, however, declined by Maldini and Massara.
"The latter [Massara] will now, however, have to try to solve the knot linked to the contract, with the 1999-born striker due to expire in 2024 and with whom there is still no economic agreement for renewal. Chelsea, and not only Chelsea, [are] an interested spectator and ready to return to the charge in the coming months."
Leao has been in strong form for the Italian champions at the start of the 2022-23 campaign, scoring three times and registering six assists in eight appearances in all competitions.
The forward has three goals and three assists in six Serie A outings, while he has contributed two assists in Milan's Champions League clashes with Red Bull Salzburg and Dinamo Zagreb.
Leao enjoyed a strong 2021-22 season for his Serie A club, scoring 14 goals and registering 12 assists in 42 appearances in all competitions, which has allegedly led to a number of clubs expressing an interest.
A recent report claimed that Manchester City are also keen on the Portuguese, with Citizens head coach Pep Guardiola keen to bring him to the Premier League champions.
Milan boss Stefano Pioli recently said that the club were planning to offer Leao a new contract in the near future amid the ongoing speculation.
"The club wants to offer Leao a new deal soon. They will take care of it - he's working at the best level. He's not creating any problems, he's just working hard as a top professional," Pioli told reporters.
However, it has been claimed that discussions over an extension have stalled, with Leao's wage demands believed to be causing a problem in the negotiations.
The attacker joined Milan from Lille in August 2019 and has represented the club on 123 occasions in all competitions, scoring 30 goals and registering 27 assists.
