Roma boss Luciano Spalletti today became the latest name to be linked with Chelsea as owner Roman Abramovich was forced to think again in his search for a new manager.

The Italian is in the frame after AC Milan coach Carlo Ancelotti rejected a £24million move to Stamford Bridge and Mark Hughes agreed a three-year contract with Manchester City.

Spalletti has caught the eye by leading Roma to second place in Serie A, as well as to the quarter-finals of the Champions League, in each of the last two seasons.

The 49 year old had hoped to have sizeable funds to spend on new players during the summer, but that is looking increasingly unlikely after billionaire American tycoon George Soros ended his interest in a takeover of Roma.

The debts of Roma's parent company, Italpetroli, are said to be about £300m, and some of their top players - Italy midfielder Alberto Aquilani and Brazilian pair Amantino Mancini and Juan - are ready to leave this summer if the club do not show they have the financial muscle to keep them.

There would be no such constraints for Spalletti - who speaks a little English - at Chelsea, and the feeling in Rome is that he would be sorely tempted by the chance to move to the Premier League, where his transition could be helped by the appointment of Blues legend Gianfranco Zola as his No2.

Chelsea desperately need to make a decisive move for Avram Grant's successor following Ancelotti's decision to reject their approach.
The 48-year-old, who has taken Milan to two Champions League titles, was believed to be the choice of Abramovich, and was reportedly offered £7m-a-year to move to London after representatives from both parties met in a Paris hotel on Monday.

But Ancelotti is adamant he never had any intention of leaving the San Siro. In an official statement, he said: "There has been no agreement with Chelsea. They are just rumours, the same ones that come up every year. I am staying at Milan - 150 per cent." The outcome of Chelsea's search for a new boss may now have to wait until after Euro 2008, with favourites Luiz Felipe Scolari and Guus Hiddink both managing at the tournament, although jobless pair Frank Rijkaard and Roberto Mancini are also still in the running.