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Conor Gallagher has rejected a contract extension offer, while Chelsea and Atletico Madrid have reached an agreement.

Gallagher has declined a new three-year contract extension with Chelsea, which included two guaranteed years and an optional third year, to remain at Stamford Bridge. He also refused an extension offer in early June.

Chelsea has now reached an agreement with Atletico Madrid on a transfer fee of just under £34 million (€40 million) to help resolve Gallagher’s future.

Gallagher is reportedly interested in moving to Atletico, and Chelsea is prepared to support his transfer to Spain if he chooses that path.

Chelsea is now waiting for Gallagher, whose current contract expires next summer, and his representatives to make a decision.

The England international is exploring his options, as no personal terms have been agreed with Atletico yet.

Chelsea’s salary offer matches the highest earners in their midfield and is comparable to other offers Gallagher has received. Last autumn, the 24-year-old also declined a contract extension because he wanted to be a regular starter rather than just a squad player, a goal he achieved last season.

Chelsea accepted a higher offer from Aston Villa for Gallagher this summer, but he chose to stay at Stamford Bridge instead.

The club prefers to sell him to a foreign team rather than a rival in the Premier League.

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