Atletico Madrid are lining up a bid to sign Alvaro Morata permanently after being warned they may have to send the striker back to Chelsea if they don’t.

As reported by Telegraph Sport last week, Chelsea handed Atletico an ultimatum to either sign Morata for around £50million this summer or face the threat of the Blues triggering the recall clause that was placed in his 18-month loan deal.

Morata has returned to pre-season training with Atletico and is optimistic a deal will be struck that allows him to stay in Spain, where he has made it clear he wants to remain.

Joining Atletico permanently would bring an end to an unhappy spell in England for Morata, who struggled to adapt to the way of life and the Premier League.

Atletico have just spent £113m on Joao Felix, but they are expected to sell Antoine Griezmann, most probably to Barcelona, for £107m which would give them the funds to sign Morata permanently. Former Chelsea striker Diego Costa could also leave the Wanda Metropolitano Stadium following a turbulent season.