Chelsea close to announcing Tiago Mendes signing?

Chelsea are reportedly close to announcing the signing of midfielder Tiago Mendes after he rejected a new contract at Atletico Madrid.

Having reached an agreement with the Spanish champions to sign striker Diego Costa, the Blues are now ready to complete Tiago's free transfer to Stamford Bridge, according to the Daily Star

Tiago, who left Chelsea in 2005 following one season at the club, is said to have agreed on a two-year deal.

The same report suggests that the Premier League outfit could also capture left-back Filipe Luis from Atletico for a fee of £20m later this month.

Chelsea have already signed Cesc Fabregas this summer from Barcelona.