Chelsea transfer news: Kurt Zouma set for Chelsea stay, but Raphael Varane remains on radar

Jose Mourinho has handed Zouma the number 5 shirt for next season

Kurt Zouma in action for Chelsea (GETTY IMAGES)

Kurt Zouma looks set to stay at Chelsea during the forthcoming season and fight for a place at the heat of Jose Mourinho's defence, despite talk of a season-long loan move.

The £12.5m signing from St Etienne was immediately loaned back to the French side after he signed in January and it was expected the 19-year-old would go back out on loan again, with Sunderland and Monaco linked.

However the Frenchman has been handed the number 5 shirt for the new season, suggesting he forms a central part in Mourinho's thinking.

Despite Zouma looking set to challenge Gary Cahill and John Terry for a place, Chelsea continue to be linked with an audacious move for Real Madrid defender Raphael Varane.

The France centre-back, who has shown promise of being among Europe's best defenders for many years to come, is reportedly unhappy at the Bernabeu where his wages are significantly lower than many of his team-mates. The 21-year-old is currently in talks with Real Madrid over his future.

Mourinho worked with Varane during his three-years as Real Madrid manager and was the coach that promoted the Frenchman to the first-team at the Bernabeu.