Kovacic joined Chelsea on a season-long loan deal from Real Madrid last year. His contract at Stamford Bridge is due to expire this summer.
According to Telegraph UK, the West London club have now decided to sign the Croatian international on a permanent basis following the long-term injury sustained by midfielder, Ruben Loftus-Cheek.
Loftus-Cheek broke his achilles tendon during Chelsea’s friendly victory over New England Revolution on Thursday night.
The report claimed that Chelsea would therefore need to negotiate a fee with Real Madrid before the player’s loan expires at the end of June, with the Los Blancos setting a price tag of around £40million for the midfielder.
Kovacic has since established himself as a key member in Chelsea manager, Maurizio Sarri’s starting XI this campaign.
The 24-year-old has featured for Chelsea in over 40 matches in all competitions this season, helping the Blues progress to the Europa League final where they will tackle London rivals, Arsenal on May 29 in Baku.
