La Gazzetta dello Sport claim that the Premier League side have submitted the bid to the Italian outfit.
Milan are reluctant to listen to offers for the 20 year old sensation, but such is the size of the deal that they may well be turned.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.