The Bayern Munich midfielder, in Florence for Germany's World Cup warm-up against Italy on Wednesday, issued a statement through German FA spokesman Harald Stenger saying: "I have not signed anything and I was also not in London."

Earlier on Tuesday Ballack's agent Michael Becker had also denied the claim that the player had signed a deal that would make him the world's highest-paid player.

Britain's Daily Mail reported that Ballack, who is out of contract after four years with Bayern Munich at the end of the season, had agreed to move to the big-spending London club on a weekly wage of 121,000 pounds (210,500 dollars).

"This is all starting to get boring and tiring," Becker told Germany's Spiegel Online: "I can only say that Michael has not signed anywhere."

In Munich, Bayern officials declined to comment.

Chelsea's policy is not to discuss any potential transfers until a contract is signed.

The Daily Mail said that Ballack, who joined Bayern after helping Bayer Leverkusen reach the 2002 Champions League final against Real Madrid, met Chelsea officials, including manager Jose Mourinho, twice last month in London.

Although Mourinho generally steers away from signing superstar players, the lure of Ballack, one of the most complete midfielders in the game, could persuade him to bend that policy.

Earlier this season Ballack had an offer from Bayern for a four-year contract worth a reported total of 36 million euros (43 million dollars). It would have been the most lucrative deal in Bundesliga history.

The club withdrew the offer in November after Ballack failed to meet their deadline.

Bayern still want to persuade the 29-year-old to sign a new deal but have said on different terms to the previous offer they tore up in anger over his failure to make up his mind.

They are aware they will receive nothing for him if he moves on a Bosman free transfer once his contract expires in July.

Ballack, Germany's Player of the Year in 2005, has long hinted he would like to spend the next segment of his career abroad with a team capable of winning the Champions League.

Clubs who have reportedly have been in the running for his services have included Real Madrid, Barcelona, Manchester United, AC Milan, Inter Milan and Juventus.