Borussia Dortmund star Marco Reus has reportedly accepted an offer from Real Madrid, which is set to disappoint Chelsea who were interested in the German, according to the Metro.
Reus was heavily linked with a move to the Blues after it was revealed that a £20million release clause is set to be activated in the summer of 2015.
Manager Jose Mourinho has therefore considered selling Andre Schurrle to raise funds in order to purchase Reus, with Dortmund keen on potentially making a swap deal.
But sources from Spain suggest that the Premier League leaders will have to look elsewhere for a marquee signing, with European Champions Real Madrid beating them to the 25-year-old.
The former Borussia Monchengladbach winger is set to sign a five-year deal with a salary of £103,000-a-week, and Real will pay Dortmund the buy-out clause to finalize the transfer this summer.
Reus has been struggling with injuries this season, but has still managed to score six goals in just nine appearances in the current campaign.