Holtby is already joining the Londoners this summer, but after Sandro was ruled out for the rest of the season they are keen to sign the player in this transfer window.
“Tottenham made an offer, which was not acceptable and we have therefore rejected it”, Schalke sporting director Horst Heldt told German daily Bild.
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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.