Chelsea have all but accepted defeat in their pursuit of Porto star Hulk.

Chelsea have admitted defeat in their pursuit of Hulk following Zenit St Petersburg's bid for the Porto striker, reportedly offering £38 million for the 25-year-old striker.

Porto are reportedly demanding a massive £60 million for the talented Brazilian.

"I have not heard about a bid from Zenit, but at £40 million I cannot see Porto selling," a Chelsea source told ESPN.

"I know Chelsea have been linked with Hulk all summer, in fact all year. But Chelsea have never negotiated. Chelsea know the price and are not prepared to even negotiate around those sorts of figures."