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Chelsea have won the fight to sign England Under 20 striker Daniel Sturridge from Manchester City.

But Sportsmail understands the fee will be decided by a tribunal after the two clubs failed to reach an agreement on adequate compensation for a player whose contract expires this summer.

Sturridge, 19, is not available on a Bosman free because he is under 24 and City are thought to be seeking a ‘development fee’ of £10million when the matter goes before an FA tribunal.

Chelsea hoped to reach an agreement but their £3m offer has been rejected.

Sturridge stunned City by demanding £55,000 a week to sign a new contract at Eastlands, leaving Chelsea and Aston Villa to fight for his signature.

He made 16 Premier League appearances last season and scored four goals but Chelsea sporting director Frank Arnesen has been after him for three years.

City are expected to make a claim for a down-payment in excess of £5m and propose that the remainder of the money comes in performance-related instalments.

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Excellant news if true. Man City are certainly pushing their luck and i hope that they get far less than what CFC were actually offereing them. Either way i hope it is true that we have signed Sturridge and i hope the club confirm it soon.

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<h1 class="main-headline">Sturridge set for Blues move</h1>

City youngster tipped to join Chelsea

Last updated: 23rd June 2009

DanielSturridge_1506472.jpg Sturridge: Out of contract

Sky Sports News understands that Chelsea have won the race to sign Manchester City starlet Daniel Sturridge.

The Blues have been linked with the 19-year-old striker for some time, but are now believed to have got their man.

Sturridge is set to see his contract at Eastlands expire this summer, with City having been unable to tie him down on new terms.

A switch to Stamford Bridge now appears to be on the cards, with Chelsea having beaten Aston Villa and West Ham to the youngster's signature.

Carlo Ancelotti's side will be forced to pay compensation to City in order to complete the deal, with Sturridge under the age of 24.

The fee involved is expected to be decided by a tribunal, with a figure in the region of £5million tipped to change hands.

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I have see him play yet... but as far as I road the comments is the Belbek type... the Man U golden boy...

I can Imagen See him... play with Pato in the Chelsea attack... like a new Drogba with some David Villa playing for Spain....

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