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Transfer news: AC Milan to take on Chelsea for cut-price Croatian midfielder Milan Badelj

AC Milan are trying to muscle in on Chelsea's move for Milan Badelj, according to reports in Italy.

The Fiorentina midfielder is heading into the final 18 months of his contract and he is refusing to pen an extension.

That has sparked interest from Chelsea, who have been alerted to the fact the Croatian could be snapped up for £7m.

But now, according to Corriere dello Sport, the Blues will have to fend off competition from Milan to get Badelj.

The Italian side are set to be armed with a £90m transfer war chest for the January window with new Chinese owners incoming.