Chelsea have reportedly deemed defender Trevoh Chalobah surplus to requirements.
The 24-year-old was linked with a move away from Stamford Bridge during the summer transfer window, amid interest from a number of clubs.
Bayern Munich boss Thomas Tuchel, who handed Chalobah his Chelsea debut in 2021, wanted to bring his former player to Germany.
While the German champions were pushing to agree a loan move, Chelsea were keen to offload Chalobah on a permanent deal.
The Blues reportedly set an initial asking price of £50m, with Chalobah under contract until the summer of 2028 with an option to extend by a further year.
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Bayern were reluctant to meet Chelsea's asking price, and they were unable to reach an agreement before the German transfer window shut at 5pm on September 1.
There was also interest from Chelsea's London rivals Tottenham Hotspur, while fellow Premier League club Nottingham Forest made a late approach to sign Chalobah.
Steve Cooper's side submitted a £25m bid on transfer deadline day, but Chalobah turned down the opportunity to complete a move to the City Ground.
As a result, the Chelsea academy graduate remained at Stamford Bridge, where his future continues to be shrouded in uncertainty.
According to the Evening Standard, the defender could be frozen out at Chelsea after being deemed surplus to requirements.
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The defender is currently recovering from a hamstring problem, but as it stands, he is not expected to play a prominent role for the first team when he returns to full fitness.
In a separate update, football.london revealed that Chalobah has been informed that there is a chance he may not play for the club again this season.
The report claims the player has asked if he can play for the Under-23 side when he returns from injury in a bid to maintain his fitness levels ahead of a possible January departure.
With Chelsea ready to part ways with Chalobah, Bayern could renew their interest when the transfer window reopens in January.
Since breaking into the first team in 2021, Chalobah has made 63 appearances across all competitions, chipping in with four goals.