Chelsea transfer news: Atletico Madrid 'fail' with bid for Blues midfielder

The 24-year-old is set to enter the final 12 months of his contract, leading to speculation over his long-term future at Stamford Bridge.

Although he is yet to sign a new deal, Gallagher is believed to be keen to stay at Chelsea after establishing himself as a key part of the first-team squad.

The midfielder was a regular fixture in the Chelsea side last season, contributing seven goals and nine assists in 50 competitive appearances.

However, Gallagher's future is not just dependent on football matters, with Chelsea open to selling academy products to help them meet the Premier League's Profit and Sustainability Rules.

Atletico fail with Gallagher bid

A recent report claimed that Atletico were preparing to make a 'cheeky' offer to sign Gallagher from Chelsea this summer.

According to Spanish outlet AS, Chelsea have swiftly rejected Atletico's bid, leaving Diego Simeone's side to go back to the drawing board.

The report claims that Atletico's €20m (£16.9m) proposal which ultimately fell considerably short of Chelsea's £50m valuation.

Atletico are reluctant to meet Chelsea's asking price, but they are expected to resume negotiations over a potential transfer.

While they remain keen on Gallagher, Atletico are also keeping tabs on Tottenham Hotspur's Tottenham's Pierre-Emile Hojbjerg, Atalanta's Ederson, Celtic's Matt O'Riley and Feyenoord's Mats Wieffer.

Where else could Gallagher go?

Although he could stay in West London, Gallagher is also attracting interest from at least two of Chelsea's Premier League rivals.

Aston Villa and Tottenham have both been linked with a possible summer move for the England international.

However, his current focus is on helping his country succeed at Euro 2024 after he was called up for his first major tournament.

Gallagher has featured as a substitute in both of England's two group games, including an appearance in Thursday's disappointing 1-1 draw against Denmark.

After playing over half-hour against the Danes, the Chelsea man will be hoping to start Tuesday's final group game against Slovenia.