An agreement was reached for the England international to join Diego Simeone's team for €42 million this summer, as Chelsea is intent on selling him.
Samu Omorodion went oppositely, though, and the contract was contingent on that. Gallagher is now in a precarious situation as Omorodion's planned transfer to Chelsea has fallen due to a disagreement over personal issues.
Reports out of Spain suggest that Gallagher trained with the Spanish giants last week, and he has already signed a contract and finished his medical with Atletico Madrid.
But Chelsea ordered Gallagher to return to London after spending five days in a hotel in Madrid.
Mauricio Pochettino started Gallagher 50 times in the first team last season and was captain on more than one occasion. However, until his future is decided, he will likely be sent to play for Chelsea's U21 team.
Joao Felix's potential permanent signing with the Blues would revive Gallagher's transfer to Atletico Madrid, although the two clubs have not yet concluded.
Additionally, according to Spanish journalist Matteo Moretto, Chelsea and Atletico Madrid have hit a snag in their negotiations over Gallagher.
The outcome can be that he stays at Chelsea but doesn't play any role in the first team.
Chelsea is ready to eliminate the England international, who helped lead the Three Lions to the Euro 2024 final because they believe he doesn't match Enzo Maresca's playing style.
Like Gallagher, Trevoh Chalobah has been ignored by Chelsea's owners, who are hesitant to use the club's remarkable youth system.
Many Blues fans have taken to social media to voice their displeasure with the transfer issue surrounding Gallagher.
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