Chelsea were encouraged to battle for the signature of Sami Khedira on Wednesday night as his agent claimed no deal had yet been struck with Arsenal.
Blues manager Jose Mourinho signed left-back Filipe Luis on Wednesday from Atletico Madrid for £18million and then set his sights on Germany midfielder Khedira.
Arsenal were understood to have agreed a £20million fee with Real Madrid for the 27-year-old but were struggling to match his wage demands of more than £180,000 a week.
However, Khedira’s agent Jorg Neubauer said: ‘We are not in talks with Arsenal. I don’t think a fee can have been agreed, otherwise I would have been told.’
Khedira is a favourite of Mourinho’s from his time at Madrid and the coach is understood to have tried to persuade him to move to Stamford Bridge.
Khedira is available as Real Madrid and his representatives have hit an impasse in negotiations over a contract extension.
Neubauer added: ‘We are talking to Real Madrid about his contract, but nothing is close to being decided. Sami has just returned from the World Cup and has gone on holiday.’
Meanwhile, Chelsea confirmed agreement with Atletico for left-back Luis.
The 28-year-old will complete the move once a medical has been passed and personal terms agreed.
Mourinho’s busy summer will continue as he attempts to persuade Khedira to join although his hopes of recruiting £20m-rated Antoine Griezmann too from Real Sociedad could be hit by competition from Monaco and Liverpool for the France forward.
Mourinho plans to have Luis in the squad for a training camp in Austria next week.