Chelsea have taken up the option of extending Giroud’s contract by one more year, which extends his stay until the end of next season.
AC Milan have been in contact with Giroud and representatives over a move and were under the impression that they could sign him on a free transfer as his old deal was set to expire in the summer.
Chelsea’s contract extension has put a spanner to their plans but it has been claimed that the striker could still leave on a free transfer.
According to Italian outlet Calciomercato.com, AC Milan have been assured by his agent that Giroud will be able to leave Chelsea for no cost.
AC Milan have continued to be in touch with Giroud and are still interested in potentially taking him to Italy.
But they are only interested in signing him on a free transfer and do not want to negotiate with Chelsea on a transfer fee.
It remains to be seen whether Giroud can convince Chelsea to let him go on a free transfer this summer.