The European champions do no want to lose Kovacic on a permanent basis, as he is seen as solid support for global team-mate Luka Modric.
‘He’ll be happy to play football, like he already was, at Real Madrid.
The Blues have added a couple of new faces this summer, with Robert Green and Jorginho both arriving to boost new manager Maurizio Sarri’s squad.
And Spanish newspaper El Pais claim Los Blancos have reluctantly agreed to let Kovacic jump ship to west London.
Real Madrid take on Roma in a pre-season friendly before going head-to-head with Atletico Madrid in the UEFA Super Cup final.
Modric was also awarded the FIFA World Cup Golden Ball in 2018.
Marca claims that Kovacic will do “anything possible” to get his way, and that includes refusing to train until he gets his way.
Mateo Kovacic is a young and talented player and in need of proper playing time to show his potential and improve to become better and better.
“Mateo is training regularly with his teammates and there are no problems with him whatsoever”.
According to sources close to the player, Modric wants to leave Real Madrid, but is willing to listen to what the club has to offer him.
Modric has been a vital cog in Madrid’s midfield over the last few years, helping them to three successive Champions League titles.
The 24-year-old has been linked with the likes of Milan and Napoli, as well as a return to the Nerazzurri, during the course of the summer.