Benfica left-back Fabio Coentrao will snub a move to the Barclays Premier League in favour of joining Real Madrid, according to reports in Portugal.
Real have reportedly lodged an offer for the 22-year-old, who is one of the top left-backs in the world, and he is keen to link up with compatriot Jose Mourinho in a team that can challenge regularly for titles at home and abroad.
Chelsea were previously believed to have agreed a deal to bring him to Stamford Bridge when Ashley Cole was supposed to be on his way to Madrid.
Coe, though, has decided to stay loyal to Chelsea and Carlo Ancelotti’s interest in Coentrao waned.
Last week Liverpool were thought to have registered their interest when Kenny Dalglish took over the reigns at Anfield.
Previous Liverpool boss Roy Hodgson brought Paul Konchesky to the Merseysiders but he has failed to impress the Anfield faithful.
And Liverpool were thought to be willing to offer £20 million for Coentrao but he now looks likely to move to the Bernabeu for the same amount.