Chelsea and Manchester City will go head-to-head for Liverpool striker Fernando Torres.

The Sun says Blues boss Carlo Ancelotti has been given the go-ahead to bid for £50million-rated Liverpool striker Torres.

Chelsea chief executive Ron Gourlay said: "If it was good for the club then we can make an exception to buy a marquee player.

"We have to challenge for trophies. We have a good squad and don't feel we are required to spend a huge amount. It's a balancing act between keeping to our strategy of trying to become self sufficient and improving the team.

"However, we want to let our on-field success drive our commercial income and any decision about signings will be made by Ancelotti.

"There is a balance to be had between young players coming through from the academy and those players that we might sign."