Chelsea join Real in the race to sign £40m Tevez

Chelsea have entered the bidding to sign Carlos Tevez although they are facing strong competition from Real Madrid. The two clubs are the only ones to have made serious inquiries about the 23-year-old Argentine, although West Ham United are hoping he will stay at Upton Park for at least one more season.

Tevez's representative Kia Joorabchian has yet to inform West Ham of his intentions - or what transfer fee he wants for the player - although it is hoped that a meeting may take place as early as this week with the club's chairman Eggert Magnusson.

It could be that if neither Chelsea nor Real meet the asking price - which sources claim could be anywhere between £20m and £40m - that a deal may be structured to keep Tevez at Upton Park. That would undoubtedly be met with a further outcry from clubs who have questioned the £5.5m fine meted out to West Ham over the controversial signing of Tevez and fellow Argentine Javier Mascherano last summer, and the non-disclosure of the full terms of the agreement.

So far Liverpool - for whom Mascherano now plays - and Manchester United have not lodged interest in Tevez, who was West Ham's player of the season. The club holds his registration and has torn up the agreement with Joorabchian and the companies which own Tevez's "economic rights" so, in theory, they could receive a transfer fee. However, this will not happen as it would certainly lead to West Ham being successfully sued by Joorabchian and MSI.

Despite the problems caused by his arrival, West Ham want Tevez to stay and believe it may be in his interests to do so. He has settled and, having avoided relegation, there are ambitions plans in place to push for Europe next season.

However, the allure of Chelsea or Real will be hard to resist for Tevez who gave a press conference on Friday, following his return to Argentina, at which he said it was time for him to "join a European giant". However, he added that "despite any offer that could arrive, what I want to say is that West Ham has priority".

Chelsea were offered the player last year and if Tevez arrived at Stamford Bridge, it would be part of the re-building process that has now started in earnest following Saturday's FA Cup final victory over United.

The win should also mean that manager Jose Mourinho remains for at least another year, although owner Roman Abramovich has still to express that he definitely wants to keep Mourinho. On Saturday night, sources indicated this would happen soon and Mourinho was almost certain to earn a reprieve. Abramovich was at Wembley on Saturday and Joe Cole confirmed that the billionaire had visited the dressing room after the match, something he has not done since falling out with Mourinho. "Roman came in and celebrated with us," Cole said. "It was nice to see him."

Chelsea chief executive Peter Kenyon yesterday reiterated Mourinho's claim that three players are expected to leave and up to four players arrive. He also repeated the assertion that "I doubt we'll have big-name signings because I don't think we need it". Chelsea are not planning to spend the tens of millions of previous seasons although Tevez, or another top-quality striker, could prove to be the exception.

Reading's Steve Sidwell is expected to arrive on a Bosman free transfer - although Newcastle United will make one last attempt to intervene when he returns from holiday - while, despite Mourinho's objections, Chelsea have begun to apply for a work permit for the defender Alex from PSV Eindhoven.

Agent Pini Zahavi is still hopeful he can persuade Chelsea to sign Talal Ben Haim from Bolton Wanderers but the Israeli is also wanted by Newcastle.

Glen Johnson has returned from his loan spell at Portsmouth while the Blackburn Rovers striker Benni McCarthy is hoping to move to Chelsea. He would not play for South Africa if he did move and therefore would not be at next year's African Nations Cup for which Chelsea might lose four players including Didier Drogba.

Kenyon insisted that neither Michael Ballack nor Andrei Shevchenko will be sold despite their indifferent seasons. "I'm confident they're going to be here as big players with Chelsea next season," he said. "They want to contribute a lot more, they feel they have a lot more to give. It takes time to settle in."

Chelsea will re-open contract talks with John Terry and Frank Lampard, who both want improved deals and insisted after Saturday's game that they wanted to stay. Terry said that suggestions he was to hand in a transfer request were "ludicrous" adding: "Now the season's over I'd like to see things get sorted out." Lampard said his "intention" was to remain at Chelsea "for life".

However, Chelsea will not give into the demands of Arjen Robben. The Dutch winger not only wants a new contract but assurances he will play more regularly. However, despite links with a move to Bayern Munich, he said he would remain at Chelsea next season.