Manchester United and Manchester City failed with late bids for Michael Olise, which would have seen the Crystal Palace star stay at Selhurst Park for another year.
Bayern Munich on Friday night won the race for the French winger, despite serious interest from Chelsea. Standard Sport understands the Blues failed to reach an agreement with Olise over wage demands.
The German giants will now look to wrap up a deal expected to be worth around £60million for Olise, but the Mirror claim United and City explored signing the winger very late in the day.
Both Manchester clubs were unwilling to cough up Olise's price tag but did reportedly explore deals to sign the player next summer. Financial Fair Play restrictions, the report claims, were key to this approach.
The Mirror adds that Chelsea were never an option for Olise, who wanted to play in the Champions League and was always going to reject the Blues for the second time inside 12 months.
Newcastle were also in the mix but, like Chelsea, never stood a chance of convincing Olise to make the move, and failed "to come anywhere near" what Palace were demanding.
Olise, 22, will now heading to Bayern, on reported wages of around £220,000 a week, as the new manager Vincent Kompany rebuilds the squad after a first trophyless season in Bavaria for 12 years.
