Branislav Ivanovic agrees Chelsea contract extension - sources

Chelsea defender Branislav Ivanovic has agreed to extend his stay at Stamford Bridge by one year, sources have told ESPN FC.

Ivanovic's existing contract was due to expire this summer and he was free to talk to overseas clubs this month.

Sources have told ESPN FC that Ivanovic has snubbed interest from AC Milan to sign a new one-year deal at Chelsea.

The 31-year-old was initially holding out for a longer deal from Chelsea, but the Serbian has come to a compromise to accept a 12-month extension, with Chelsea keen to stick their policy of only offering one-year deals to players aged 30 and above.

Ivanovic, who has made 22 appearances for the club this season, has been a mainstay in the Chelsea defence since joining the club from Lokomotiv Moscow in 2008.

News of Ivanovic's new deal is set to be confirmed later this week.