Chelsea and Manchester City have received a major blow in the race to sign Diego Godin, with reports claiming that the defender has signed a new deal with current club Atletico Madrid.
27-year-old Godin, who arrived at the Vicente Calderon from La Liga rivals Villarreal in August 2010, has impressed with Diego Simeone's Rojiblancos with a number of consistently strong showings in the heart of defence.
Such impressive form has inevitably led to repeated speculation concerning his future, with Jose Mourinho's Blues and City - who are many fans' two top favourites to triumph in the Premier League this season - believed to be monitoring the Uruguayan international who is reportedly valued at £16 million.
However, it looks as if both Mourinho and rival Manuel Pellegrini will have to switch their respective focus elsewhere, with talkSPORT suggesting that the former Nacional star has signed a new contract with Atletico that will see him remain in the Spanish capital until 2018.
Such news would appear to hurt City more than Chelsea, with the 2011/12 Premier League champions suffering a number of humiliating lapses of late with goalkeeper Joe Hart's uncertain form not helped by the continued absence of influential Belgian captain Vincent Kompany.
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