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Chelsea are set to report Manchester City boss Mark Hughes to the Premier League for 'tapping up' John Terry.

The Blues are furious that Hughes openly spoke about his pursuit of the England skipper - even spelling out why Terry should sign on at Eastlands.

JT, who will be offered a new £150,000-a- week deal to convince him to stay at Stamford Bridge, has been the subject of two City bids.

Chelsea say Terry will snub City's advances and confirm his future is at Stamford Bridge very shortly. But the Blues are still considering reporting the Eastlands club.

A source said: "The way Hughes has openly talked about wanting Terry to sign for him is totally out of order.

"Other teams have been punished for a lot less - so Hughes could find himself in a lot of trouble."

While Chelsea chiefs appear confident their captain will stay, Terry is still torn between staying and joining Mark Hughes.

It is understood that the defender is not interested in the money but is far more concerned by the direction the club are taking.

Chelsea have failed to capture a number of big-name signings this summer - including Spanish hitman David Villa and French midfielder Franck Ribery - and only this week pulled out of a deal for Arsenal strike star Emmanuel Adebayor.

Terry earns £125,000 a week - around £10,000 less than England team-mate Frank Lampard - but will become the club's top earner if he decides to accept the package.

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