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Chelsea have terminated the contract of their manager Antonio Conte.

Conte returned to the Cobham last Saturday to commence Chelsea's pre-season training, however the Italian will not continue with the team as the club inches closer to signing Maurizio Sarri as manager.

Chelsea's Italian head coach Antonio Conte gestures on the touchline during the English Premier League football match between West Ham United and Chelsea at The London Stadium, in east London on December 9, 2017.

The Blues have reportedly agreed on a compensation package for Sarri, 59.

The agreement with Chelsea now looks to have been finalised, with Conte's exit paving the way for Sarri to take over at Stamford Bridge.

Relations soured between Conte and the board, and performances were soon affected.

The chain-smoking former Empoli manager - who will have to restrain himself on the touchline in England where smoking is banned - was named Serie A Coach of the Year in 2016-17.

But he was replaced as manager of the Italian club by Carlo Ancelotti in May.

'We wish Antonio every success in his future career'.

They are in the process of clearing out his backroom staff so former Napoli boss Sarri can start ahead of the first pre-season fixture in Australia a week on Monday.

Ex-Napoli coach Sarri, meanwhile, could be presented as his replacement as early as Friday, with the Blues squad already informed over the change in management.