Now a free agent, Sterling is in talks with 'seven Champions League level clubs' about a move in the coming days, says Sky Sports.
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Sterling is eager to get a deal agreed and closed as he seeks to kickstart his career which stalled under former Chelsea manager Enzo Maresca.
Among clubs mentioned as potential suitors are Napoli and Olympique Marseille.
Chelsea, upon releasing Sterling, said in a statement: "Raheem Sterling has today departed Chelsea Football Club by mutual agreement, bringing to an end three-and-a-half seasons as our player, having signed in the summer of 2022 when he was transferred from Manchester City.
"We thank Raheem for the contribution he made while a Chelsea player and wish him well for the next stage in his career."