Chelsea Transfer News - Falcao ends Chelsea speculation

Chelsea's pursuit of Porto striker Radamel Falcao has come to an end after the Colombian extended his contract with the Portuguese champions.

Falcao had been linked with a move following Andre Villas-Boas to London after Chelsea appointed the 33-year-old as their manager. Falcao himself was believed to favour Chelsea and work with Villas-Baos again under whom he won the treble last season, while setting the goal scoring record of 17 in the Europa League.

Chelsea were reportedly willing to trigger the £26.5 million release clause in his contract as he was the top target of their new manager. However, the 25-year-old has now signed a new four-year contract with Porto, which has increased his release clause to nearly £40 million.

Apart from Chelsea, Manchester United, Real Madrid and Atletico Madrid were also linked to the Colombian, who is currently on international duty and will face Peru in the Copa America quarterfinals. However, all speculation linking him elsewhere will surely end with this latest development.

Falcao moved to Porto in 2009 from Argentina's River Plate and played a key part last season as Villas-Boas led the Portuguese side to triumphs in the league, Portuguese cup and the Europa League.