Chelsea are in advanced negotiations to appoint Xabi Alonso as their new permanent manager following the dismissal of Liam Rosenior, as first reported by Goal. Alonso, 44, has reportedly agreed to a deal in principle to take over at Stamford Bridge, with Fabrizio Romano confirming a direct meeting took place to seal the agreement. However, his arrival coincides with a significant squad dilemma as Bayern Munich sporting director Max Eberl confirmed the German club will not activate their €65 million (£56.3m) buy option for 24-year-old striker Nicolas Jackson. The Senegal international will return to London this summer, forcing BlueCo to manage a bloated attacking department that was reinforced during his absence.
The Nicolas Jackson financial and squad conundrum
Jackson spent the 2025/26 campaign on loan at the Allianz Arena, where Bayern paid an initial £14.3 million loan fee for his services. Despite contributing 10 goals and four assists in 33 appearances as a deputy to Harry Kane, Bayern have deemed the permanent fee too high. Speaking to FootballTransfers, Max Eberl stated:
We will not trigger the option for Nicolas Jackson.Lothar Matthaus further clarified the situation on Sky Germany, noting that while manager Vincent Kompany was "convinced of Jackson's abilities," the €65 million price tag proved prohibitive. His return presents a logistical hurdle for Alonso; Jackson original moved to Chelsea from Villarreal for €37 million in 2023 but was marginalised under Enzo Maresca before his departure for Germany.
A crowded frontline for Xabi Alonso
Alonso inherits a Chelsea squad that has undergone significant upheaval in the centre-forward position. During Jackson's year in Munich, the club used its heavy recruitment model to sign Joao Pedro and Liam Delap, both of whom remain on the books. This leaves Alonso with three senior strikers competing for a single starting spot in his preferred system. While Jackson was frequently criticised during his first season at Stamford Bridge, SciSports data currently ranks him as the fifth-best pure centre-forward globally based on underlying performance metrics. This statistical profile suggests a high ceiling for the incoming manager to work with, yet the club's Profit and Sustainability Rules (PSR) position may necessitate a permanent sale rather than reintegration. Whether Alonso views Jackson as an elite asset or a source of much-needed transfer credit will be his first major decision upon signing.
The appointment of Alonso is expected to be finalised before the FA Cup Final as Chelsea move to conclude their second managerial search in 14 months.