TRANSFER NEWS:CHELSEA HAVE conceded defeat in their pursuit of Kaka, with the Brazilian due to be confirmed as a Real Madrid player for a world record €64.7 million on Monday, leaving the Premier League club's attention fixed on Bayern Munich's Franck Ribery and David Villa of Valencia as they attempt a marquee summer signing of their own.

Kaka, who is in Brazil preparing for his country’s coming World Cup qualifiers, is understood to have agreed terms with Real and the Spanish club have agreed a commission fee with the player’s father and agent, Bosco Leite.

Chelsea last night denied reports that they had made a €84.7 million bid for the player.

“We have never made an offer to Milan for Kaka and, therefore, not one at this extraordinary level,” said a spokesman.

“As a consequence, we have not discussed a salary with the player either. Any reports to the contrary are totally untrue.”

It is understood Kaka, despite his public utterances, had informed team-mates at Milan by late on Tuesday night that he is to leave the club for Madrid to become the returning president Florentino Perez’s first eye-catching signing of his second spell in charge.

The prospect of missing out on the former world player of the year will come as a blow for the new Chelsea manager, Carlo Ancelotti, who worked with Kaka at San Siro, but also to the club’s owner, Roman Abramovich. Yet their interest serves as a statement of intent that the oligarch is prepared to spend heavily this summer in a throwback to the lavish early years at Chelsea.

There is interest in Milan’s young Brazilian striker, Alexandre Pato, though the Rossoneri will be reluctant to sell another of their younger attacking players. Pato himself said yesterday he wished to remain at Milan.

Instead, Chelsea are likely to focus their attentions on Villa and Ribery, who had been expected to favour a move to Real should he leave Bayern Munich. Now that the Spanish club have secured Kaka, the France international appears less of an obvious option.

But Bayern general manager Uli Hoeness, who has discussed Ribery’s future with the club’s new coach, Louis van Gaal, stressed yesterday the player is not for sale.

“Van Gaal really wants to keep him,” he said. “We will not let Ribery go. There will be inquiries for Ribery in the next four to six weeks, I’m sure. We will be polite but we will not negotiate.”

Meanwhile, Valencia’s Villa has made no secret of his desire to remain in Spain and much depends on whether Barcelona lodge a bid for his services.

Chelsea defender Ricardo Carvalho is expected to rejoin Jose Mourinho at Inter Milan after confirming yesterday that he is “open to offers” to leave London after five years.