Chelsea suffer blow as club chairman drops confident claim on transfer target signing new contract

Chelsea appear to have missed out on Michael Olise, as he has signed a new four-year deal with Crystal Palace.

Palace chairman Steve Parish has uploaded a picture on Instagram of Olise penning his new deal, captioning it:

"I’m absolutely delighted to announce (Olise) has decided to commit his future to Crystal Palace football club, and this afternoon, signed a new four-year deal with the club."

Olise's new deal comes as a surprise, as he was being heavily linked with a move to Chelsea. Reports claimed that the Blues had agreed on a fee just short of €40 million release for him.

However, the young French forward appears to have made a U-turn over his decision to depart Selhurst Park. He has now committed his long-term future to the club by signing a new four-year contract.

The Guardian's Ed Aarons reported that Palace had discussed going to a tribunal with the west Londoners over their approach for the Frenchman. That may explain why Chelsea have not made progress with their pursuit of the young attacker.

Olise was in fine form last season, bagging two goals and 11 assists in 40 games across competitions. He was also linked with treble winners Manchester City but is now set to remain with Roy Hodgson's side.

Mauricio Pochettino's side will have to turn their attention elsewhere, with Olise opting to stay with the Eagles. Nottingham Forest's Brennan Johnson appears to be on their radar now, per The Guardian.

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Chelsea's Reece James picks up hamstring injury

Reece James is set for a scan on his hamstring.

According to English journalist Nathan Gissing, Reece James has sustained a hamstring injury. The English right-back will undergo a scan on Thursday (August 17) to clarify the extent of the issue.

It's ominous news for Chelsea fans, as James suffered with injury issues throughout last season. The newly appointed Blues captain played 76 minutes of his side's 1-1 draw against Liverpool in their season opener on Sunday.

The 23-year-old is regarded as one, if not, Pochettino's side's most important players. He has long been touted as one of the best right-backs in English football.However, James' fitness problems have been a concern, and fans will hope that the hamstring issue isn't too serious.

His lack of game time last season coincided with the west Londoners' poor showing. He featured 24 times across competitions, scoring two goals and providing as many assists.