Enzo Fernandez is said to be seeking a departure from Chelsea this summer following the club's failure to secure European football.
The Blues would prefer to retain their vice-captain but are prepared to accept offers for the Argentine midfielder.
Chelsea are demanding £120million for the World Cup winner, a figure that would establish a new club-record sale when excluding add-ons.
The 25-year-old's reported preferred destination is Real Madrid, with his representative Javier Pastore already in discussions with the Spanish giants, according to talkSPORT.
Fernandez appeared to bid farewell to supporters after Chelsea's defeat to Sunderland last Sunday, fuelling speculation about his intentions to move on.
The Argentine arrived at Stamford Bridge in January 2023 for £106m, which was then a British transfer record.
His time at the club has included silverware, with Fernandez helping Chelsea lift the 2025 Europa Conference League trophy and the inaugural expanded Club World Cup.
Enzo Fernandez is understood to want out at Chelsea
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However, his tenure has not been without controversy.
The Argentine had to apologise to teammates in the summer of 2024 after saying a racist chant on social media following his country's Copa America victory.
More recently, Chelsea suspended him for two matches after the March international break for publicly courting interest from Real Madrid.
Chelsea are eager to settle Fernandez's future swiftly to give incoming head coach Xabi Alonso a stable foundation after a turbulent campaign this season.
Chelsea have set an asking price of £120m for the Argentine
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Negotiations over a contract extension have reached a stalemate, with the two parties no closer to agreeing on fresh terms.
While the club would ideally keep the Argentine, he is not considered completely off-limits in the transfer market.
Real Madrid have yet to determine whether to pursue a specialist defensive midfielder.
Should the Spanish club opt for the Chelsea man, he would need to return to the deeper role in which he excelled during his Benfica days.
Real Madrid are one of a number of clubs hinting at making a move for Fernandez
|REUTERS
Fernandez was recently spotted in the Spanish capital taking in the Madrid Open, with teammates Joao Pedro and Marc Cucurella.
The Argentine appeared to be friendly with Real star Jude Bellingham when sitting a row in front of the Englishman.
Manchester City have also been linked with the Argentine, but sources indicate their primary target is Nottingham Forest's Elliot Anderson.
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