Spanish newspaper AS is reporting that the midfielder is very unlikely to return to Real Madrid at the end of his current loan spell with the west London side.
The midfielder joined under Maurizio Sarri on a season-long loan deal in the summer and he has made one assist in 13 Premier League games so far this season.
According to the same report, Real Madrid have been disappointed by Kovacic’s attitude and the midfielder has “very little chance” of returning to The Bernabeu.
The same story goes on to claim that Kovacic is feeling good in London and is not opposed to the idea of staying at Chelsea FC on a permanent deal.
However, the same article also claims that Tottenham Hotspur also have a firm interest in signing Kovacic and they will push to try and sign him in the summer.
Kovacic was a second-half substitute on Wednesday night but was unable to prevent Chelsea FC from slipping to a disappointing 3-1 loss to Wolves in the Premier League.
Chelsea FC will now turn their attentions towards their showdown with Premier League leaders Manchester City at Stamford Bridge on Saturday evening.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news