Atletico Madrid have set Conor Gallagher a deadline to decide whether he will join the Spanish club after a £34m fee was agreed with Chelsea.
Gallagher has been told he will only be a squad player under Enzo Maresca, with the new boss favouring a possession-heavy style of play at Chelsea.
One source has told Sky Sports News that Chelsea have made two contract offers to Gallagher of two years plus the option of a third.
The first offer came four days before the start of the Euros when Gallagher rejected the chance to join Aston Villa. The other, identical to the first, came this week before Chelsea agreed a deal with Atletico Madrid.
Gallagher is open to signing a long-term contract at Chelsea in line with the contract length offered to the other midfielders at the club.
If a deal cannot be agreed with Chelsea, Gallagher will continue to assess all his options.
Chelsea will meet with him with the aim of resolving the situation. They recognise he is an academy graduate but want to understand what he wants to do.
SkySport