Nicolas Jackson set to remain at Chelsea as Bayern Munich walk away after loan collapse, with Blues also attempting to recall young star from Sunderland after 26 just days

Nicolas Jackson's dream move to Bayern Munich appeared dead on Sunday night as sources in Germany claimed they would not be spending their deadline day trying to convince Chelsea to change their mind.

The Blues officially told Bayern that they were cancelling their loan agreement after Liam Delap injured his hamstring in their 2-0 Premier League win over Fulham on Saturday. 

That sparked anger as Jackson and his camp had already flown to Munich to finalise his transfer which involved a €15million loan with a €65m option for next summer and a sell-on clause.

His advisor, Diomansy Kamara, the former Fulham forward, used Instagram to show his frustration after learning of Chelsea's decision.

The Blues told Jackson that he no longer had their permission to undergo a medical while reminding him that he is under contract until 2033 and therefore obliged to return. Despite that, the 24-year-old striker remained in Germany in the hope of the deal being revived.

Chelsea had intimated that they might be willing to sell him permanently if Bayern were willing to agree to that, but late on Sunday, we learned that they had gone cold on that idea.

Meanwhile, Chelsea and Sunderland were locked in talks on Sunday night after a request from the Blues for the recall of their 19-year-old striker, Marc Guiu.

Guiu only joined the Black Cats on loan 26 days ago, but Chelsea have asked for him back. However, with no recall clause available for activating in this window, terminating the temporary transfer required the permission of Sunderland.

That led to speculation as to whether Jackson had another move lined up on deadline day. 'Let's see,' said one source close to him.