ANTONIO RUDIGER had agreed personal terms over a contract extension – but the deal is now off after the club was slapped with sanctions, according to reports.
The German defender, 29, is out of contract at the end of the season.
Chelsea had tried – and failed – to convince Rudiger to sign an extension for much of the season.
Manchester United and Bayern Munich were alerted to the potential free transfer this summer, with the centre-back already able to negotiate pre-contract terms with foreign clubs.
But BILD have now claimed Rudiger had finally agreed to STAY at Chelsea before sanctions scuppered the deal.
Abramovich's assets were frozen, with Chelsea placed under a special licence which allows them to operate but unable to generate new revenue.
Owner Roman Abramovich's assets were frozen last week due to his relationship with Vladimir Putin.
Chelsea have been placed under a special licence which allows them to operate but bans them from generating new revenue.
As such, the West London giants are banned from any and all transfer activity – including offering players new contracts.
The Blues have a number of deals expiring this summer, including defenders Rudiger, Cesar Azpilicueta and Andreas Christensen.