Chelsea’s initial offer of £29.5m for Jamie Gittens has been rejected by Borussia Dortmund, according to Sky in Germany.
Negotiations are ongoing between the parties and a new bid from Chelsea is expected.
Dortmund are understood to want £42-50m for the forward.
The England U21 international wants to join the Blues and play for them in the Club World Cup, with a verbal agreement in place between the two.
Dortmund will also play in this summer’s competition, with Chelsea having until Tuesday’s deadline to get the deal done if they want Gittens to feature in the US.
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The west London club are looking to strengthen in the winger position following the decision not to take up the option to sign Jadon Sancho permanently.
The 20-year-old winger was a target in January and despite losing his place in Dortmund’s starting XI towards the end of the season, has remained high on a list of eight or nine attacking names Chelsea are working on this summer.
Chelsea may also sign another striker after already completing deal for Liam Delap, with Hugo Ekitike and Benjamin Sesko also on their shortlist.
But goalkeeper Kepa Arrizabalaga looks set to leave Stamford Bridge.
Arsenal are progressing with a deal to sign him and are expected to trigger the £5m release clause in his contract.
Sky Sports
