Chelsea have begun discussions with Real Madrid about signing midfielder Mateo Kovacic on a permanent basis.

Kovacic joined the west London club on a season-long loan in August and has become a mainstay in the first team.

The Liga club bought the Croatia international from Inter Milan for around £26.7million in 2015 and will not let him go unless they receive a significant fee.

Chelsea are willing to negotiate, having seen enough from Kovacic this season to explore whether an agreement can be struck. He has started 13 games in all competitions and played consistently alongside Jorginho and N’Golo Kante in a three-man midfield.

The 24-year-old made it clear to Madrid in the summer that he wanted to leave in order to play first-team football on a more regular basis.

He has been seen as a long-term successor at the Bernabeu to fellow Croatia international Luka Modric, who won the Ballon d’Or this week. Modric turned 33 in September and, while he is clearly still playing at a very high level, Madrid must start planning for the future.

However, the manner in which Kovacic forced through the loan move has put Madrid’s desire to keep him in real doubt.

In September, Kovacic indicated that he would be prepared to stay at Chelsea long-term. “I’m really happy at Chelsea,” he said. “The city is amazing, the fans are great, the stadium, everything is nice, so I could imagine myself here. After two years of struggling in Madrid, playing and then not playing, it was difficult. You don’t have the confidence, you don’t try the things you know.

“This was my decision to go. Chelsea came, I spoke with the coach and the club. It was definitely just Chelsea for me. I wanted to come here and I am happy that it happened.”

Five players who could replace Luka Modric at Real Madrid 7 show all Five players who could replace Luka Modric at Real Madrid 1/7 At 33-years-old, and following a summer for transfer speculation, Real Madrid should be considering life after Luka Modric. We look at five possible replacements... Reuters 2/7 Mateo Kovacic Real Madrid (on loan at Chelsea)



Modric’s Croatia team-mate was signed by Rafa Benitez in the summer of 2015 and is now a three-time Champions League winner. He was earmarked as a long-term replacement for his compatriot, but found his route to the first team blocked by Luka and others and left to join Chelsea on loan in the summer in search of regular playing time. EPA 3/7 Dani Ceballos Real Madrid



Kovacic’s departure has opened the door for Dani Ceballos to receive more minutes and the 22-year-old midfielder looks much happier in his second season at Real Madrid after moving from Betis in the summer summer of 2017. REUTERS 4/7 James Rodriguez Real Madrid (on loan at Bayern Munich)



Like Kovacic, James Rodriguez left Real Madrid in search of more first-team opportunities. The Colombian playmaker joined Bayern Munich in a two-year loan agreement and is reportedly keen to return, but it is unclear whether coach Santiago Solari would want him to come back. AFP/Getty Images 5/7 Christian Eriksen Tottenham



Christian Eriksen has shone since his arrival from Ajax in 2013 and Real Madrid have watched the Denmark midfielder with interest over the last couple of seasons. However, with Tottenham chairman Daniel Levy putting a prohibitive €200m asking price on the 26-year-old, he looks unlikely to arrive any time soon. AFP/Getty Images 6/7 Frenkie de Jong Ajax



Real Madrid are one of a number of clubs interested in signing Ajax midfielder Frenkie De Jong, along with Barcelona and Manchester City, and see the Dutch international as a player who could be a long-term replacement for Modric. AFP/Getty Images/Stanley Gontha 7/7 Click here for the full report REUTERS 1/7 At 33-years-old, and following a summer for transfer speculation, Real Madrid should be considering life after Luka Modric. We look at five possible replacements... Reuters 2/7 Mateo Kovacic Real Madrid (on loan at Chelsea)



Modric’s Croatia team-mate was signed by Rafa Benitez in the summer of 2015 and is now a three-time Champions League winner. He was earmarked as a long-term replacement for his compatriot, but found his route to the first team blocked by Luka and others and left to join Chelsea on loan in the summer in search of regular playing time. EPA 3/7 Dani Ceballos Real Madrid



Kovacic’s departure has opened the door for Dani Ceballos to receive more minutes and the 22-year-old midfielder looks much happier in his second season at Real Madrid after moving from Betis in the summer summer of 2017. REUTERS 4/7 James Rodriguez Real Madrid (on loan at Bayern Munich)



Like Kovacic, James Rodriguez left Real Madrid in search of more first-team opportunities. The Colombian playmaker joined Bayern Munich in a two-year loan agreement and is reportedly keen to return, but it is unclear whether coach Santiago Solari would want him to come back. AFP/Getty Images 5/7 Christian Eriksen Tottenham



Christian Eriksen has shone since his arrival from Ajax in 2013 and Real Madrid have watched the Denmark midfielder with interest over the last couple of seasons. However, with Tottenham chairman Daniel Levy putting a prohibitive €200m asking price on the 26-year-old, he looks unlikely to arrive any time soon. AFP/Getty Images 6/7 Frenkie de Jong Ajax



Real Madrid are one of a number of clubs interested in signing Ajax midfielder Frenkie De Jong, along with Barcelona and Manchester City, and see the Dutch international as a player who could be a long-term replacement for Modric. AFP/Getty Images/Stanley Gontha 7/7 Click here for the full report REUTERS

Chelsea and Real Madrid are on reasonable terms, but the Blues will be wary of any discussions for Kovacic being used by Madrid to talk about buying Eden Hazard.

Coach Maurizio Sarri claimed on Tuesday that Chelsea are in talks with Hazard every week about a new contract.

That is understood to be a bit of an exaggeration, but more talks have been held recently and Chelsea remain optimistic that they can persuade the 27-year-old to sign an extension, worth in excess of £300,000-a-week.

Meanwhile, Chelsea take on Wolves tonight and Ruben Loftus-Cheek said: “It is important we go into the Manchester City game [on Saturday] with a win and a bit of confidence.”