Chelsea are in talks with Schalke over the transfer of Sead Kolasinac and could sign him on deadline day if a fee can be agreed with the Bundesliga giants.

The Blues have been in the market for a defender this month but were pipped to the signing of Niklas Süle by Bayern Munich.

Kolasinac, however, has emerged as a cut-price option with his contract expiring this summer.

While the Bosnia-Herzegovina international could sign a pre-contract agreement with the Premier League leaders and sign for them for nothing on a Bosman in June, Schalke would be willing to part with the left-side defender for a fee of around £5million.

Juventus were thought to be favourites to sign Kolasinac but after playing hardball over the fee, with the potential to sign him for free come the summer, the Old Lady have failed to come to an agreement with Schalke. The versatile 23-year-old, who can play at full-back, wing-back or on the left of his back three, is also a target for Sevilla.

And it may benefit Chelsea, who are expected to let John Terry leave the club this summer.