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Valencia centre-back Aymen Abdennour had emerged as a late target for Chelsea in the summer transfer window.
The Tunisia international had sent his representatives to get a permanent deal in with an unknown English club presumed to be Chelsea.
But, the Blues were only interested in a season-long loan for the player and this put an end to the proposed agreement.
Antonio Conte is thought to have identified Abdennour as a possible back-up to David Luiz, who made his comeback from Paris Saint-Germain on deadline day.
"I was negotiating with English clubs during the summer market, but for financial reasons we could not make the transfer." Abdennour told reporters.
"Valencia is a great club and I have no problem to continue because I have four years on my contract."
League rivals Everton were earlier deemed to be interested in the defender before they pursued Ashley Williams from Swansea City.
Written by Sri Aswin
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