The Blues were the frontrunners to sign the RB Leipzig star earlier this summer.
Josko Gvardiol has signed a contract extension at RB Leipzig after rejecting an offer from Chelsea.
Several Premier League clubs, including Manchester United and Chelsea, were in the race to sign Gvardiol this summer.
The Blues reportedly went as far as offering €90m for the Croatian star. However, Leipzig managed to convince him to sign a new contract before the transfer window’s deadline.
“I really enjoy being here and I wanted to stay here,” Gvardiol said after extending his deal until 2027.
“We have a lot of work to do and a lot to achieve here. We have a good team and we’re ready.
“We’re in the Champions League and won the DFB-Pokal last season. We want to compete for trophies once again.
“I’m grateful to the club for counting on me and planning with me long-term.”
A product of Dynamo Zagreb’s academy, Gvardiol left the Croatian club to join Leipzig in July 2021.
The 20-year-old developed into one of the best Bundesliga defenders last season, helping Leipzig win the DFB-Pokal.
He was among an elite group of Bundesliga defenders who made more than 50 interceptions and 200 ball recoveries last season.