Chelsea have asked Conor Gallagher to come back to England from Madrid this week.
The English midfielder had been hoping to secure a move to Atletico Madrid.
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While the deal is still possible, Fabrizio Romano states that it is very much deadlocked.
Chelsea backed out of signing Atletico forward Samu Omorodion due to a medical issue.
They are now considering signing Joao Felix from Atleti, but that deal is not as favorable to the Spanish club.
Unless Chelsea can find a way to make the arrangement work for Atleti, Gallagher has to come back.