Chelsea are clear to sign permanently on-loan Real Madrid midfielder Mateo Kovacic.

Goal says the Blues saw the summer transfer window open on Thursday without the ability to recruit any new players following a FIFA-imposed ban.

Kovacic is on loan at Chelsea from Spanish giants Real but, unlike fellow loanee Gonzalo Higuain, his agreement does not contain a permanent signing clause.

The Stamford Bridge club are confident they can sign Kovacic without contravening their transfer embargo.

Chelsea tried and failed to overturn the ban by appealing to football's governing body and now they intend to take the case to the Court of Arbitration for Sport.

Chelsea are exploring the possibility of converting Kovacic's loan deal into a permanent switch, without needing to register the player on the electronic TMS system used to process international transfers.