Chelsea are now the only club in the running to sign Germany captain Michael Ballack, BBC Sport understands. Inter Milan announced yesterday they were no longer interested in signing the 29-year-old. Inter realised they were unlikely to be able to sign the midfielder as long as Chelsea were interested in him.

Ballack sees his future away from Bayern Munich and is not talking to the German champions about renewing his contract with them. Inter Milan owner Massimo Moratti announced he had pulled out of the race to sign Ballack. "I have read things in recent days that are not true," he said. "From what I understand, it appears Ballack's requirements are exorbitant and, therefore, we are not interested. This is the end of the Ballack affair."

Real Madrid had confirmed their interest in Ballack but changes at the club meant this was not followed up. Real sacked coach Wanderley Luxemburgo in December last year and their president, Florentino Perez, stepped down earlier this month.

Bayern chairman Karl-Heinz Rummenigge has admitted Ballack is set to move to Chelsea when his contract expires in the summer. "Inter made their move for Ballack much too late. I'm sure that by now he is joining Chelsea," Rummenigge said. "There are little possibilities he'll stay. The reasons are not of an economic nature but in his desire to have new experiences."

Ballack has denied reports he has already signed a four-year deal with the Blues. His agent Michael Becker last week said Ballack would want to join a club with a better chance of winning the Champions League than Bayern.

Bayern manager Felix Magath has said the club is seeking a replacement for the midfielder. "We need to look for a leading figure outside the club. When Michael leaves we will lose a personality who takes responsibility."