Crystal Palace chairman Steve Parish has revealed Michael Olise has signed a new four-year contract, rejecting the chance to join Chelsea in the process.

Chelsea had triggered the £35m release clause in Olise's previous contract and were confident of wrapping up a deal for the French midfielder.

Sources have confirmed to 90min that the Blues have been left stunned by news of Olise's extension, which was first revealed by Palace chairman Parish on social media.

"I’m absolutely delighted to announce Michael Olise has decided to commit his future to Crystal Palace football club and this afternoon signed a new four year deal with the club," Parish wrote.

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Palace were hugely unimpressed with Chelsea's pursuit of Olise, with reports suggesting the Eagles had even threatened to take the matter to a tribunal, but 90min understands Chelsea expected the deal to go through anyway.

However, Olise has now put pen to paper on a new four-year deal, ending Chelsea's hopes of a reunion with the 21-year-old.

Chelsea had earmarked Olise as the final piece of their midfield rebuild this summer - Romeo Lavia's move from Southampton is set to be announced imminently - and had been prepared to begin focusing on other positions.

Ajax's Mohammed Kudus is known to have admirers at Stamford Bridge and Chelsea held talks with the Ghana international over a move earlier this summer.

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This article was originally published on 90min as Michael Olise snubs Chelsea to sign new Crystal Palace contract.