Didier Drogba has snubbed a move back to Chelsea, while the Blues contemplate signing young goalkeeper Jack Butland.
Drogba left Chelsea at the end of the season after only being offered a one-year deal, when he wanted at least two.
The Ivorian joined Chinese club Shanghai Shenhua, but the move has not worked out for the big striker and he has been looking for a move back to Europe in the January transfer window.
Roman Abramovich after refusing to budge from the one-year offer to the Chelsea legend, despite the Ivorian almost single-handedly giving winning Chelsea the Champions League last season, made an amazing u-turn in a bid to bring back the talismanic forward.
Abramovich offered Drogba a six-month deal, with an option to extend it by a further year, according to The Sun, but the 34-year-old rejected the offer.
Instead, Drogba is reportedly closing in on a move to Turkish giants Galatsaray, who recently completed the signing of Dutch midfielder Welsey Sneijder.
The Turkish club, who can also offer Champions League football, have offered Drogba lucrative terms and are on the verge of agreeing a deal with the prolific forward.
"They have made a formal bid for him," a spokesman for Drogba's representatives, Sport PR Company, said.
Drogba, who is with the Ivory Coast at the Africa Cup of Nations currently and trained with the Blues prior to the tournament, has reportedly given the go-ahead to an 18-month deal, with the veteran set to earn around £6 million ($9.5 million) a year.
Butland move
The Blues are looking to take advantage of Birmingham City's financial problems by making a cut-price £3 million (4.8 million) move for highly-rated goalkeeper Butland, according to the Daily Mirror.
Although the Blues have one of the best keepers in the world in Petr Cech, they are keen to bring in a long-term replacement, despite having Thibault Courtois in their ranks.
Courtois, currently on loan at Atletico Madrid, has been linked with a move to Barcelona, and Chelsea are keen to ensure they have all bases covered when it comes to the goalkeeping department.
Englishman Butland has been tipped for a bright future and has been linked to the likes of Liverpool, Everton and Arsenal, but none of the clubs have made a concrete move as yet.