Chelsea have dropped their asking price for Cesc Fabregas in the last 24 hours.

Chelsea and AC Milan are locked in negotiations over a January fee for the Spain international, who is off contract in June.

Tuttosport says Chelsea have cut their valuation from €10m to €8m, but it's still too rich for the Rossonero.

Milan are willing to cough up - but only to €4m.

The big problem for all three parties is the threat of financial fair play penalties that are hanging over Milan - and as such restricting their spending plans for next month.