Chelsea have slapped a massive asking price on West Ham coaching target Steve Clarke.

The Mirror says the Hammers are staggered by Chelsea's demand for £5million to compensate the Blues for the defection of assistant manager Clarke.

The clubs have failed to resolve the dispute over Clarke's compensation package.

A West Ham insider said: "We're staggered by Chelsea's excessive demands for compensation for a person who's been so loyal to them.

"We hope we can resolve the issue in a reasonable manner. We're also confused by the fact that Scolari has been widely quoted accepting that Steve has moved on, yet the Chelsea hierarchy say he remains their employee."

The source went on: "In many way this isn't a West Ham-Chelsea dispute. It's about Steve and how he's being treated by Chelsea.

"It's incredible, given Steve's wish to move on and explanation to all the parties about why he wanted to leave, that he's being treated like this.

"It just doesn't make any sense. This is a guy who's spent the best part of 21 years of his working life at Stamford Bridge - with a two-year break at Newcastle. He's been a Chelsea player and coach since 1987.

"You'd think they would recognise his wish to leave and wish him all the best.

"Instead he's going through all this from a club that threw about £5m at Avram Grant and £3m at Henk Ten Cate last season after they'd failed."