Chelsea are closing in on a £43 million deal for AC Milan striker Alexandre Pato. Corriere dello Sport says the Rossoneri are to introduce a salary cap of £3.5m per year and the belt tightening at the club means the sake of Pato is likely should there be a big offer from West London.

Pato, 20, was the subject of strong interest from the Blues last summer but a £39m bid was turned down. But AC Milan vice president Adriano Galliani is understood to have agreed to let Pato go at the end of this season to boost the club's coffers.

Real Madrid are also keen to reunite Pato with his former Milan teammate Kaka.