Chelsea are set to pass on signing permanently Mateo Kovacic.

Kovacic has been tipped for a return to Inter Milan following the end of his loan spell at Chelsea - with the Blues not keen to buy him and his parent club Real Madrid also wanting to ship him out.

Kovacic made 51 appearances in all competitions for the Blues - some from the bench - but that has not been enough to convince Chelsea to shell out for him, says the Daily Mail.

And Inter Milan want to take advantage of the situation and bring him back to Serie A.

The Nerazzurri previously sold Kovacic to Real Madrid for £34m in the summer of 2015, but his value has since plummeted after three difficult seasons.