The 20-year-old was subject to a bid from the West London club back in January, but Man City had no intention of selling another youngster to their rivals.
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According to Simon Phillips, Chelsea are still big fans of O’Riley, with scouts impressed by his versatility and potential.
O’Riley was an attacking midfielder as he came through the youth ranks at Man City but was primarily deployed a left-back by Pep Guardiola when he broke into the first-team last season.
He signed a new deal with City last season but is understood to be wanting more consistent game time and may have to leave the club to get it.