Diego Simeone is reportedly set to become Chelsea's new manager

According to Spanish outlet OK Diario, Simeone has decided he wants a new challenge after five years in charge at Atletico.

Simeone , 45, is claimed to have already agreed a contract to take over from Guus Hiddink at Stamford Bridge.

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Club owner Roman Abramovich is not expected to keep Hiddink on past the summer as he instead seeks a long-term replacement.

Juventus boss Massimiliano Allegri has also been earmarked as a possible replacement, with candidate Pep Guardiola now out of the running after agreeing terms to join Manchester City.

As for Simeone, the Argentine still has work to do in Madrid, with Atletico pushing for the Spanish title and preparing to face PSV in the Champions League last-16 next week.