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Chelsea have accepted a bid from Atletico Madrid for midfielder Conor Gallagher after he rejected a new Blues contract in June.

The England international, 24, is now able to negotiate personal terms after a bid of around £33m, according to sources in Spain, was accepted.

Chelsea are understood to prefer the sale to a club outside of English football so have opted to accept a lower bid, rather than the £45m being discussed with Aston Villa in June.

It remains unclear whether Gallagher will accept a move overseas but the Londoners are ready to sell with less than one year remaining on his current deal.

He is believed to have turned down a three-year contract, structured in a two-year deal with an option for an extra year, in June.

Gallagher could also opt to leave the club on a free transfer next summer and has previously had interest from Tottenham, West Ham and Everton.