Miranda is set to reject interest from the Premier League and stay at Atletico.
Blues boss Jose Mourinho signed Varane from the French second division during his time in charge at Real and would love to be reunited with the 21-year-old at Stamford Bridge.
Varane has demanded contract talks with Real after hinting that he was not happy with his current wages.
And if those talks do not go well, that would pave the way for Mourinho to swoop.
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