Chelsea still want Italian coach Carlo Ancelotti to be their next manager

Sources close to the AC Milan coach insisted last night that the double Champions League winner is staying at the San Siro.

Chelsea have refused to rule out Carlo Ancelotti as their next manager

But the statement Ancelotti issued on Tuesday evening, when he said he had no desire to leave Milan, did not reflect the encouragement Chelsea received from his representatives during a meeting in Paris.

The developments on Tuesday left Stamford Bridge officials both 'stunned and unimpressed' but they will not close the door on one of the most respected coaches in Europe.

They will, however, continue to examine other options.

Luiz Felipe Scolari remains a strong contender, but reports in Italy suggest Roma's Luciano Spalletti, also on the shortlist, will reject Chelsea's advances.

Yesterday Croatia coach Slaven Bilic emerged as a contender but he would appear to be a distant outsider who is probably being pushed by his representatives.

Chelsea captain John Terry has been cleared by UEFA of claims that he spat at Carlos Tevez during his team's Champions League Final defeat by Manchester United.

Terry strenuously denied it and last night UEFA confirmed that no action is being taken as video evidence indicated there is no case to answer.

Chelsea left-back Ashley Cole and Barcelona's Deco have emerged as top targets for Jose Mourinho after his arrival as Inter's new coach, but it has scuppered Arsenal midfielder Alexander Hleb's hopes of a move to the San Siro.

The former Chelsea manager has also refused to rule out a move for Frank Lampard or Ricardo Carvalho.

Hleb is now expected to join Barcelona, with his agent Vincenzo Morabito saying: 'I'm sorry we won't be able to take him to Italy, because he liked Inter a lot. But Mourinho has made his own choices.'

Michael Essien's agent has denied reports that Mourinho has approached the Chelsea midfielder.