Chelsea will offer Xabi Alonso a three year-deal which could come as early as in January according to Metro.
The Spanish midfielder's contract expires next summer and Jose Mourinho is keen to be reunited with his former player.
Alonso, for now, hasn't renewed his contract and it is unclear whether this is because of the player's demands or the club's unwillingness due to his age.
In January, there is two options for Alonso. Madrid could either choose to sell him outright where they would be reportedly willing to accept around £3 million instead of losing Alonso on a free in the summer.
Alonso may seek to sign a pre-contract with his preferred destination - this would have to be to a non-Spanish club if Alonso fails to agree a contract renewal with Real Madrid.
So far this season, Alonso has been blighted by injuries and has failed to feature once for club and country but his return looms as he has started training again earlier this month.
The 'three year-contract,' is quite unconventional on Chelsea's behalf as they have a strict rule of offering over 30's a rolling one year-contract. The likes of Frank Lampard, Ashley Cole and Samuel Eto'o have all been offered deals in line with this rule.
This shows how much Mourinho really wants to sign the experienced midfielder who has won a total of seven trophies during his time at Liverpool and Real Madrid. His range of passing from deep along with his undoubted vision would be a big plus for Chelsea.
Chelsea may face competition for Liverpool, who have been previously linked with their former midfielder in recent weeks.
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