The Blues get tough in their search for a new manager...
After hearing AC Milan are set to offer manager Carlo Ancelotti a new two-year contract extension, Chelsea have responded by issuing a take-it-or-leave-it offer to the Italian, according to British tabloid, The News of the World.The newspaper also reports that the Italian coach has signed a pre-contract with the Blues in a three-year-deal worth around £18.6 million.
However, reports now suggest that Milan have made a counter offer to the coach, worth a reported £17.6 million.
It now seems that that the Italian club are keen to keep him at San Siro after a period of uncertainty.
If the club gain Champions League football for next season, it could persuade the Italian to stay in Milan.
A close friend of Ancelotti's said, "When Ancelotti signed his pre-contract with Chelsea things were not good at Milan. It seemed best for him to move on and so the offer from Abramovich was irresistible.
"But it is not looking so irresistible now as Milan are in fine form. Five wins in a row, eight matches unbeaten and on course for the Champions League.
"The whole mood at Milan has changed. They were talking to technical area manager Leonardo De Araujo about taking over from Ancelotti but not anymore - now all they are interested in is keeping the man they've got. And they feel they are winning the argument.
"Ancelotti likes his life in Italy and is happy and secure at Milan where he has a great relationship with Silvio Berlusconi and Adriano Galliani - warm and friendly.
"He's worried he won't have the same warm relationship with Roman Abramovich and Frank Arnesen at Chelsea. Or the same control as he does at Milan.
"So there are growing doubts in his mind and instead of it being a closed deal it is now 50-50 whether Ancelotti stays or goes."
The Blues have reportedly been interested in recruiting Ancelotti ever since they sacked former manager Luis Felipe Scolari earlier in the season, appointing Guus Hiddink as temporary replacement until the end of the season.
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