Roberto di Matteo is expected to reject a one-year contract offer from Chelsea.
The Daily Star Sunday says Di Matteo returns to Chelsea this week from holiday determined to thrash out his future.
Chelsea want to keep all options open and plan to offer him just a one-year contract, freeing them to go for Pep Guardiola, also 41, after he has taken a 12-month break.
RMD will reject that, demanding more time to establish his methods.
For all the latest football news go to tribalfootball.com.