Chelsea could offload 28-year-old to fund potential incoming amid interest from Manchester City and Bayern Munich - Reports

Chelsea are reportedly considering offloading Mateo Kovacic, 28, to rebuild their midfield amid interest from Manchester City and Bayern Munich in the midfielder.

According to the Evening Standard, the Blues are looking at signing a new defensive midfielder. However, they will need to start balancing their books following their £106.8 million signing of Enzo Fernandez from Benfica in January. That took their expenditure to over £600 million since Todd Boehly became their co-owner in May last year.

The Blues are now weighing up a potential sale of Kovacic, who's garnering interest from Manchester City and Bayern. The latter are now coached by former Chelsea coach Thomas Tuchel.

Kovacic has 16 months left on his contract. The upcoming summer transfer window might be the last time the west London giants could gain a decent price for the Croatian. He has made 27 appearances across competitions this season, scoring two goals and providing an assist.

Manchester City boss Pep Guardiola is said to be an admirer of Kovacic. Raheem Sterling, who headed to Stamford Bridge from the Etihad last summer, said that the midfielder was highly regarded at his former club:

"When we used to play him for Manchester City, I used to think ‘ oh my good gosh,’ I’m not going to lie ... There was a few times Kova was doing some serious stuff against us."

The Blues are undergoing a rebuild following their takeover in May. The midfield is an area Potter seems to be attending to; they sold Jorginho to Arsenal in January for £12 million.

Chelsea did lure Fernandez to west London, but signing a defensive midfielder to eventually replace N'Golo Kante may be on their agenda. The Frenchman looks likely to stay at the club beyond this summer, but injury issues have taken hold this season.

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Chelsea's Raheem Sterling frustrated with Manchester City exit

Raheem Sterling (second right) was left fuming with his treatment by City.

Sterling became dissatisfied with life at Manchester City towards the later part of his stint with Guardiola's side. He admitted that in an interview with Sky Sports after his departure:

"At the time, I was fuming, raging, but it's gone; it's in the past, and I can only focus on the present, which is now, here at Chelsea, and the opportunity I've got here to go out and showcase my talents once again."

Sterling left Manchester City last summer and joined Chelsea for £47.5 million. He has endured a mixed debut season at Stamford Bridge, scoring seven goals and providing three assists in 27 games. He scored a vital equaliser in Potter's side's 2-1 Champions League last 16 aggregate comeback win over Borussia Dortmund earlier this month.

The English attacker was a hit at the Etihad before leaving, winning the Premier League four times. He bagged 131 goals and 95 assists in 339 games for the Cityzens.