​Chelsea are set to make Mateo Kovacic's loan deal from Real Madrid permanent after striking an agreement with the La Liga outfit worth in the region of €50m, with additional bonuses.

The Blues have money to spend this summer after seeing Eden Hazard head in the opposite direction for a reported fee of €100m, which may rise to €130m after add-ons are taken into consideration.

Croatian midfielder Kovacic featured 32 times in the Premier League for the club last season and will now act as the club's one and only incoming this summer. Sky Sports Italy's Gianluca Di Marzio broke the news on ​Twitter that the 25-year-old will leave ​Los Blancos after three seasons in the Spanish capital.

With ​Chelsea currently under a two-window transfer ban, Kovacic offered the side the only big name signing available to them, due to a loophole in his loan deal meaning a permanent move falls outside the boundaries of the club's ban.

He experienced a mixed season at Stamford Bridge, registering just two assists in 51 appearances. Many fans were unhappy with his perceived lack of goal threat, made more clear when featuring in a three man midfield alongside N'Golo Kante and Jorginho.

Mateo Kovacic

Maurizio Sarri left his post in west London to return to his native Italy where he has taken the reins at Juventus, leaving Kovacic's future uncertain. 

However, with ​Frank Lampard widely expected to take over at the club, it remains to be seen whether the decision to sign the midfielder was one from the club's hierarchy, or a demand from the incoming Blues legend.