Chelsea told Leicester midfielder Danny Drinkwater will cost them £40million

Leicester City are ready to tell Chelsea that they will have to hand over the Nemanja Matic money to land Danny Drinkwater in the final weeks of the transfer window.

Chelsea will make a second offer of around £25 million for Drinkwater after having an initial £15m bid rejected by Leicester.

Drinkwater is interested in a move to Stamford Bridge, but Leicester value the £27-year-old at £40m – the same fee Chelsea received for Matic from Manchester United.

Drinkwater is two years younger than Matic, has four years remaining on his Leicester contract and counts as a home-grown player which is hugely valuable for clubs competing in both the Premier League and Champions League – such as Chelsea.

Head coach Antonio Conte is desperate for new signings to be made following Chelsea’s opening day defeat to Burnley and the sending off of Cesc Fàbregas, which further reduces his midfield options.

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Chelsea have promised Conte they will make at least three new signings before the transfer window shuts at the end of this month, but the Premier League champions face the threat of being held to ransom by clubs or struggling to convince their rivals to sell.

Sources close to Alex Sandro do not expect Juventus to agree to sell the left-back at this late stage of the transfer window, even if Chelsea are willing to pay over £60m.

That could lead to Chelsea turning their attention to Danny Rose after Sunday’s game against Tottenham Hotspur, but Spurs will only listen to outrageous offers for their injured left-back.

Southampton remain adamant that Virgil van Dijk will not be sold, despite the central defender handing in a transfer request, and are likely to want significantly more than the £15m Chelsea are prepared to offer as an opening bid for right-back Cedric Soares.

Arsenal manager Arsène Wenger has reiterated the fact he does not want to sell Alex Oxlade-Chamberlain, who Chelsea have had at least one bid rejected for.

Other than finally trying to land their targets, Chelsea are also having to contend with the delicate situation of Diego Costa’s future.

Chelsea again ordered Costa, who has remained in Brazil since the end of last season, to return to the club this week.

But sources in Spain claim Deportivo de La Coruña may be prepared to propose a solution by offering to take Costa on loan until January, when he could then re-join Atlético Madrid.

Atlético's desire to re-sign Costa has been complicated by their transfer embargo that prevents them from registering any new players until the New Year.

Costa is prepared to re-join Atlético now and train until he can play for the club in January, but the Spaniards have been reluctant to pay his full wages until that time.

Chelsea are not willing to subsidise Costa’s salary, which means a loan deal to La Coruña ahead of a permanent £40m switch to Atlético in January could suit all parties.