The Old Lady are set to make a £28.4 million move for the 23-year-old, but Los Merengues are thought to be looking for nearer to £33.7 million for the Spain international. Although a brilliant player, the glut of attacking riches at the club means that he is unable to play every week.
Last season the midfielder managed four goals and nine assists in 34 La Liga appearances, eight of which were from the bench. However, with Cristiano Ronaldo, James Rodriguez, Karim Benzema, and Gareth Bale also competing for places in the forward positions at the Bernabeu, it is unlikely that he will become a regular starter anytime soon.
Chelsea transfer news
Chelsea news and transfer rumours: £20m new signing, Jon Terry AXE explained, and £63.9m ace eyed
Chelsea to unveil exciting new signing, medical already done & shirt number assigned
Chelsea showed their weaknesses in a 3-0 loss to Manchester City on Sunday, and this move could be the start of a rebuilding job from manager Jose Mourinho. They have already signed Abdul Baba Rahman from Augsburg to help their back line, and more arrivals could be on the way.