• Tottenham have expressed interest in signing Cole
• Ballack wanted two-year deal but Blues offered 12-months

Chelsea are to release Joe Cole and Michael Ballack when their contracts expire at the end of the month after failing to agree terms over new deals with the experienced internationals.

Cole, currently with the England squad in South Africa, moved to Stamford Bridge from West Ham United for £6.6m in 2003 and made more than 200 appearances for the Blues. However, he has only played a bit-part role at the club since suffering a serious knee injury in an FA Cup third-round replay at Southend United early in 2009.

That lengthy absence frustrated his attempts to earn improved terms at the club, with the player’s wage demands proving at odds with the terms Chelsea were prepared to offer. Cole had been seeking around £100,000-a-week, with the Londoners only willing to match his current £80,000-a-week package. Negotiations have stalled in recent weeks, leaving his departure somewhat inevitable.

Tottenham Hotspur have expressed an interest in signing the 29-year-old midfielder, keen as they are to strengthen their squad with a potential Champions League campaign ahead.

The fact that Cole would be available without a transfer fee may offer them some leeway in compensating for his considerable salary. A move to Arsenal, which has been mooted in some quarters, still appears unlikely given the wage demands the England international is likely to make.

Ironically the Chelsea assistant manager Ray Wilkins this week insisted that the club would do everything they could to keep hold of the playmaker. “We’ve obviously been in dialogue with Joe for months now and it’s pretty evident that Carlo [Ancelotti] and myself would love Joe to stay, but it’s down now to the club to see what we can do,” he said. “We sincerely hope Joe stays with us – he’s a smashing guy and he’s a wonderful footballer so we’ll keep our fingers crossed.”

Ballack’s exit is, in many ways, more surprising but, again, is due to Chelsea’s desire to reduce their considerable weekly wage bill. The Germany captain, who will miss the summer’s tournament in South Africa after damaging an ankle in a challenge by Portsmouth’s Kevin-Prince Boateng in last month’s FA Cup final, had been seeking a two-year deal.However, Chelsea were only prepared to offer the 33-year-old, who joined the club from Bayern Munich under the Bosman ruling in 2006, a 12-month contract and were some distance apart when it came to agreeing terms on the financial package involved, with Ballack having signed on £121,000-a-week.

He departs having just claimed his first Premier League title and with Schalke 04, recently qualified for the Champions League, keen to secure his services.

The Guardian reported yesterday how Ballack has become the target for clubs in Dubai, including Al Wasl and Al Shabab. Although only a minor league, clubs in the emirate have huge financial resources and could provide a lucrative swansong for the midfielder. Sven Goran Eriksson, the former England manager and now in charge of Ivory Coast for the finals has also been approached.

ChelseaDominic Fifieldguardian.co.uk

• He is very solid, says Chelsea manager
• Ancelotti praises mental attitude of his team

Carlo Ancelotti has welcomed the consistent form of Petr Cech ahead of this evening’s pivotal Premier League visit to Everton. Manchester United also travel to Aston Villa and, ahead of what the Italian describes as an “important day” for the destiny of the title, he pronounced himself pleased with Cech’s recent displays after the goalkeeper produced an uneven performance during the reverse fixture in December.

That afternoon was notable as Chelsea conceded three goals at home and the team twice allowed a one-goal lead to be levelled. Cech might have been more decisive from Leighton Baines’s corner, which led to Everton’s opener, and ended the game with his confidence dented after Louis Saha’s 63rd-minute equaliser looped over the keeper. But Cech’s display in Chelsea’s 2-0 win over Arsenal on Sunday delighted his manager, who believes he is now offering consistent reliability.

“He is very solid,” said Ancelotti. “Maybe he made a mistake against Everton but when a player has a problem I want him close to me and the club. This is football. Everybody can make mistakes. You must forget them and move forward.

“I have a very solid team because we have experience, strength, players who are unselfish, who like to play for their colleagues so I’m very happy about the mental attitude of this team.”

Arsenal host Liverpool tonight at the Emirates, knowing victory is imperative if they have any chance of clawing back the nine-point deficit to Chelsea at the summit. While Ancelotti refused to rule out Arsène Wenger’s team he discussed the title race in terms of it being between Chelsea and Manchester United.

“This is very good thing to have this race against Manchester United,” he said of Sir Alex Ferguson’s team who are two points behind. “They are a fantastic team. They’re involved in the Champions League like us. It will be a fantastic thing for English football to have two teams battling to the end of the season. It will be a race for details. We have our characteristics, they have theirs. Some different. It’s about the details, like the Champions League. If you stay fit in this period, don’t have injuries, if you can be lucky also because that’s important in football.”

Asked if Chelsea and United have now moved up a level, leaving Arsenal behind, Ancelotti responded: “Both teams are in good condition now. They have a lot of confidence. I saw Manchester United against Arsenal and [they] played very well. They are a very dangerous team to be against us.”

John Terry, who should play against Everton following the dead leg he suffered against Arsenal, is considering whether to ask for compassionate leave so that he can miss Saturday’s fifth-round FA Cup tie against Cardiff City and meet his wife, Toni Poole, in Dubai following allegations regarding his personal life.

Ancelotti refused to say whether he would prefer Terry to play at the weekend. “If I say yes and he doesn’t come you can say … if he needs a rest I will let him.

“I think that Terry is one of the most important players in this team. But we have other fantastic defenders so he is not indispensable.”

Ancelotti also supported Michael ­Ballack, who said that Wenger’s team is too predictable. The Italian added: “Ballack explained his position about it. I think ­Ballack said good things because we prepared very well for the game and did what we wanted to do on the pitch, nothing else.

“I heard that Wenger said about our fouls in the game but we did the same fouls as Arsenal.”

ChelseaCarlo AncelottiPremier LeagueJamie Jacksonguardian.co.uk