Chelsea have rejected an improved £25m offer from Crystal Palace for Reece James.

The Independent understands that the new offer was submitted earlier this week and was immediately knocked back by Chelsea, who want the 19-year-old full-back to sign a new and improved contract at the club.

Palace have also submitted an alternative proposal of an 18-month loan with a significant upfront fee, however, Chelsea have rejected that approach too and want James to remain at the club this season.

James, who is still recovering from ankle ligament damage, has been given guarantees by Frank Lampard and Jody Morris that he will receive significant first-team minutes but is yet to commit to any new deal.

Chelsea have already rejected approaches from Palace, Brighton, Bournemouth and Newcastle for the England youth international this summer.

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