Chelsea agree £40m fee to sign 25-year-old midfielder

Chelsea have reportedly reached an agreement with Real Madrid to secure the services of Mateo Kovacic on a permanent basis.

The Croatian spent the previous campaign on loan with the Blues where he impress with a total of 51 appearances in all competitions.

According to Spanish outlet AS, the Blues had the option to buy as part of the terms in the contract of Kovacic and they have now activated the clause for a fee of £40m.

The west London side are not permitted to register any players during the next 12 months and that may have played a role in their decision to keep hold of Kovacic.

Similar to Kovacic, the Blues have the option to buy Gonzalo Higuain from Juventus but they seem to have declined the choice following the Argentine's inconsistent form during the backend of last season.

Higuain is set to be reunited with former Chelsea boss Maurizio Sarri at Juventus and reports have indicated that the marksman could feature for the Bianconeri next term.