Chelsea are reportedly preparing a new contract for midfielder Nemanja Matic.

The 26-year-old has impressed for the Blues under manager Jose Mourinho since returning to Stamford Bridge in January from Benfica.

According to Goal.com, the club are eager to tie down Matic to an improved deal as a reward for his performances and as a warning to Real Madrid, who are believed to be monitoring the player.

Matic, who was previously sold by Chelsea as part of a deal to sign David Luiz back in 2011, has four years remaining on his current contract.