The Spanish outfit finally picked a replacement for Zinedine Zidane by appointing the Spain boss to take over after the World Cup.
Yet despite being in a separate league to Chelsea, Madrid’s decision to choose Lopetegui for their vacant position is likely to have a huge effect on the Blues this summer.
That’s because according to the Telegraph last week, Chelsea were instead hoping that Madrid would approach Conte for the role at the Bernabeu.
The Italian is set to receive £9m from the club, should he be sacked before the end of his contract.
But Chelsea chiefs were hoping Madrid would choose Conte so that the package would not have to be paid to the former Juventus boss.
The 48-year-old’s future has been up in the air for a number of months after a turbulent second season in England.
Conte has always insisted he wants to see out his contract in west London.
But Maurizio Sarri has been the clear front-runner for the Stamford Bridge hotseat since the turn of the year.
The former Napoli chief is said to be nearing an agreement to replace Conte this summer.
But Madrid’s move may now scupper Chelsea’s managerial plans.
Luis Enrique and Laurent Blanc have also previously been linked with a move to the Blues.
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