James Rodríguez scores incredible goal during training
The Blues had been keen on a move for the Colombian in January after Antonio Conte failed in his attempts to sign him last summer.
But according to The Sun, Chelsea have been put off by his £60m price tag and fear he won’t fit into Conte’s 3-4-3 system.
The news will come as a blow to Rodriguez who is keen to leave the Bernabeu after falling out of favour under Zinedine Zidane.
Recent reports suggested Rodriguez preferred a move to Stamford Bridge over Manchester United, but with Chelsea backing down a move to Old Trafford is now more likely.
The Sun suggest Jose Mourinho is prioritising his pursuit of Antoine Griezmann and the club have already started talks.
But Griezmann won’t be available until the summer and in order to bolster his midfield options for the second half of the campaign, Mourinho has not ruled out trying to land Rodriguez when the transfer window opens next month.
Mourinho is desperate to bring in a No10 that would improve the link up play between marquee signings Paul Pogba and Zlatan Ibrahimovic.
United now look to be clear favourites to try and push a deal over the line for Rodriguez, if Mourinho decides to put the wheels in motion following Chelsea’s decision to pull out.