Chelsea believe they have been duped into thinking Carlo Ancelotti was prepared to become their new manager.
A day of intrigue and carefully-worded denials ended on Tuesday night with Chelsea being humiliatingly rebuffed by the AC Milan manager. It is understood that Ancelotti was - and may still be - the favoured candidate of Roman Abramovich and the Russian met with representatives of the 48-year-old in a Paris hotel on Monday.
Whether or not a formal offer was made is a matter of semantics; at the very least it was made abundantly clear that, if he moved to Stamford Bridge, Ancelotti could expect to be paid £6m a year - twice the sum he earns at Milan. Reports claim that the composition of Ancelotti's coaching staff and the transfer budget available in west London was also discussed.
However, in a dramatic twist last night, Ancelotti issued a statement declaring his intention to remain at Milan. "I'm 150 per cent certain I will stay," he announced following a lengthy meeting at the club's training ground with vice-president Adriano Galliani.
According to The Times, 'Many at Chelsea are privately furious at Ancelotti, believing that he has led them on to gain an improved contract at Milan. Chelsea did not deny speaking to him, stating only that they have not reached agreement with any manager or approached any club to speak to one of their employees. The club believe that there is no obligation under Fifa rules to ask permission before speaking to the manager of a foreign club, as there is in the Barclays Premier League.'
As a man not accustomed to the inconvenience of rejection, Abramovich is not yet ready to give up on his number one target. The Independent claims that 'Chelsea are still exploring possibilities under which they could do a deal - a £6m, four-year contract is the potential offer - and have not ruled Ancelotti out completely.'
What's Being Said
"I'm staying at AC Milan for sure, and for many seasons to come. I've not spoken to anyone at Chelsea" - Ancelotti.
"We are extremely happy how our search is progressing. Contrary to reports Chelsea Football Club has not reached agreement with any individual to become manager, nor have we sought permission from any organisation to talk to their manager" - Chelsea.


