Chelsea has just seen their chances of signing Raphael Varane this summer improve after reports suggest Real Madrid are working hard to get Pepe to sign a new contract with the club.

According to the Daily Mirror if Pepe were to sign a new contract it would then allow Real Madrid to let Varane leave in the summer knowing that they can get a good price for him with both Chelsea and Manchester United interested in the 21-year-old French international.

Chelsea boss Jose Mourinho knows Varane well from his time in the Spanish capital, and sees the young Frenchman as a long term replacement for the 34-year-old John Terry, after calling both Varane and Kurt Zouma the best young defenders in the world.

Meanwhile Captain Terry is likely to be given a one-year extension on his current contract. But Blues boss Mourinho will jump at the chance to sign Varane should Madrid allow him to leave.