Chelsea midfielder Conor Gallagher will return to training at Cobham on Wednesday after flying back from Madrid on Tuesday with his move to Atletico on hold.
The Blues academy product has been in Spain for the last five days with the finer points of a £33.7million move to the capital being worked out between his boyhood club and the LaLiga big beasts.
Gallagher, who has been with the Blues since the age of eight, is thought to have been told that he will only be a rank-and-file squad player as part of new manager Enzo Maresca's set-up at Stamford Bridge.
However, as he remains a Chelsea player, the club are believed to havetold the player to returnto England while talks continue - with Gallagher returning to London on Tuesday.
Conor Gallagher will return to Chelsea training on Wednesday after his Atletico Madrid move collapsed
Chelsea have been courting a number of Atletico players and looked to be the answer to the club's prayers.
The west London hierarchy have been eyeing a move for young forward Samu Omorodion to the tune of £34.5m.
The Portugal starlet previously spent the latter half of the 2022-23 season at Stamford Bridge, but was also deemed to be surplus to requirements by then-incoming manager Mauricio Pochettino.
The two clubs are once again in conversation about the 24-year-old, who scored four goals in his 20 games in Chelsea blue.
Felix - who is thought to be valued by Chelsea at £55million - was previously offered as a makeweight to Man City as the sides thrashed out an initial £64m deal for Alvarez, on the heels of his loan season at Barcelona last term.
Felix became the fourth-most expensive player in history in July 2019 when Benfica sold him to Atletico for £114m.
The Portugal international has featured for Diego Simeone's side in pre-season but his future remains uncertain.
Should Atletico not be able to see out a deal with the Premier League side, Chelsea could be left with a resentful figure in the dressing room which feels increasingly cramped.
The Blues have played a highly active role in the transfer window thus far, and look to bring yet more players into the side as Maresca bolsters his attacking ranks.
Most recently, Chelsea announced the £54m signing of Pedro Neto from Wolves, confirming his move south during half-time in their 1-1 friendly against Inter Milan on Sunday.
The winger's arrival brings the west London club's squad total up to an eye-popping 43 players, with 10 signings being brought in during this window alone.