Chelsea are on the verge of re-signing defender Branislav Ivanovic, according to reports.

The Telegraph is reporting the Serbian international will put pen to paper on a new two-year deal with the Blues after both parties reached a breakthrough in the negotiation process, despite earlier talks appearing to have to broken down.

Manchester City had been interested in acquiring the services of Ivanovic, but it now appears likely the 31-year-old will re-sign with the Blues until 2018.

Chelsea usually employ a policy of only offering one-year contract extensions to players 30 and older, but have made an exception for the veteran fullback who has made more than 200 appearances for the Blues.

Ivanovic has made 20 appearances for the London outfit this campaign.