Claudio Ranieri could be set to return to Valencia after his Italian-based agent confirmed the Mestalla was his "probable destination".
Ranieri's long-speculated departure was confirmed on Monday, freeing the west London club to complete a deal to bring Portuguese coach Jose Mourinho to Stamford Bridge.
Chelsea are, though, still conducting negotiations over the settlement of the remainder of their former manager's contract, which ran until 2007.
Under the terms, the 52-year-old was set to receive a pay-off in excess of £6million. Though Ranieri reportedly held talks with Tottenham Hotspur chairman Daniel Levy yesterday, he looks set to return to the Mestalla.
Ranieri guided Valencia to Copa del Rey success in 1999 and would be a popular choice to succeed Rafael Benitez, who resigned yesterday.
"There is interest from Valencia," confirmed Ranieri's Italy-based agent Vincenzo Morabito.
"We have had talks, but we have not negotiated anything yet, because we still have to define the terms of Ranieri's departure (from Chelsea).
"Once this is done, Ranieri will be free to negotiate with Valencia.
"Valencia is the probable destination for Ranieri because it is a big club and one he has coached in the past."
Meanwhile, Ranieri's English representative, Jon Smith, today welcomed the assurance by Chelsea chief executive Peter Kenyon that the club would honour their former manager's contract "in full".
In a statement to the Press Association, Smith said: "I heard what Peter Kenyon said. If that means payment of all the monies and this season's bonuses that are due under the balance of the contract, without deductions, then there is no dispute."
Speaking at this morning's press conference to unveil Mourinho, Kenyon had declared: "We will honour Claudio's contract in full.
"Talks have been taking place with his representatives over the last 48 hours and there is no question that we will treat it in any other manner."
