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Maurizio Sarri will now look elsewhere for a new midfield after Leandro Paredes has completed his transfer to Paris Saint-Germain.
Chelsea initially seemed to take control of the 24-year-old, but the Ligue 1 champions were at the front of the line last week.
However, he has now signed a four and a half year contract in the French capital after being sealed by his departure from Zenit St Petersburg.
Time is now pressing for the Blues to bring a midfielder on which Paredes would have been appointed to replace Cesc Fabregas following his move to Monaco.
Nicolo Barella, of Cagliari, has been linked to Chelsea in recent months, while Denis Suarez, of Barcelona, could be an option, given that Spanish reports suggest that a transfer to Arsenal is now canceled.
Speaking of his move to France, Paredes said on the club's official website: "I am very proud to join Paris Saint-Germain.
"After my previous experiences in Italy and Russia, I now have this fantastic opportunity, not only to discover a new league, but above all to wear one of the most prestigious club jerseys in the world.
"I would like to thank the President and the coach for the trust they have shown me in signing me.
"We all know the extraordinary sporting dimension of Paris Saint-Germain, its players and its staff.
"I share the same ambitions and will do everything in my power to give my club what it expects of me as a midfielder.
"I also look forward to the pbadionate atmosphere of the Parc des Princes, while I grew up with football fever in Argentina."
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