The England star, 28, has turned down the offer which
would leave him £30,000-a-week short of the club's top
earners.
Cole, signed from Arsenal three years ago, wants to
commit to the Blues but the contract has to be right.
A source said: "Ashley loves Chelsea and is genuinely
excited about working with new boss Carlo Ancelotti.
"He wants to give the best years of his career to the
club but the deal has to be right for such an important
contract.
"He needs to feel as valued as any of the club's other
top players."
Cole, currently on £70,000 a week, also interests
European champions Barcelona. But it is big-spending Madrid who
have stepped up their interest in the left-back, who has won 71
England caps.
Madrid president Florentine Perez is aware the club's
defence needs strengthening and new boss Manuel Pellegrini is a
long-term admirer of Cole.
