Chelsea have handed Manchester City a significant blow in the Premier League champions' interest in full-back Reece James, as per a new report.
There has been plenty of discussions between the aforementioned clubs in recent weeks.
An agreement for the transfer of Raheem Sterling is edging ever closer to completion, with the England international expected to make the switch to Stamford Bridge in a deal worth £55 million.
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Across the past few transfer windows, Reece James has been another name linking the two clubs, with Manchester City holding a keen interest in a player they see as a future transfer target.
However, the latest development concerning the Chelsea academy product would suggest that hopes at the Etihad Stadium of signing the player one day are far-fetched.
According to a fresh report from The I, Chelsea are now keen to extend Reece James’ contract and talks are expected to take place within the next few weeks.
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The report quotes a source with knowledge of the situation, who reveals that negotiations are due to commence soon for a deal that would tie him to the club until his late 20s.
It is further explained that the player himself is keen to discuss fresh terms and his team have been preparing for talks.
Such a development would certainly be a big blow to Manchester City.
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Alongside La Liga giants Real Madrid, Etihad officials have held a strong admiration for the player.
In fact, there was an understanding in some quarters that club officials at the Premier League champions saw Reece James as a potential candidate to replace Kyle Walker further down the line.
Given the latest advance in the situation, Manchester City will seemingly have to look elsewhere.
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The club themselves, alongside the parent company City Football Group, have a strong armoury of right-back talent across the globe, although it remains to be seen which of those names show enough promise to challenge for a place at the Etihad Stadium.
Most recently, Issa Kabore - who spent last season on loan at CFG-owned French side ESTAC Troyes - has commanded significant interest from both England and France.
In the Premier League alone, Southampton, Nottingham Forest, and Brentford have shown a liking for the player, but it is OGC Nice in Ligue 1 who are understood to be launching the first proposal to Manchester City.
At the Etihad Stadium, despite the high regard in which the player is held, they would be willing to sell for around €15 million this summer.
Topics: Reece James, Chelsea, Chelsea Transfer News & Rumours, Manchester City, Manchester City Transfer News & Rumours, Premier League, Football, Transfers