Unsettled midfielder Joe Cole looks set to leave Chelsea at the end of the season with Manchester United and Manchester City both ready to offer the midfielder a deal.

The 28-year-old is out of contract at the end of the season and had been hoping to stay at the club he supported as a boy, but is now prepared to walk away after the Blues' most recent contract offer.

Cole reportedly felt humiliated by the club's offer of a one-year extension with a 40 per cent pay cut, according to the Daily Star. The deal would net him around £36,000-a-week, while Cole had been looking for a figure in excess of £100,000.

Cole has made it clear he will not accept such a short deal, which would leave him earning far less than club and country team-mates John Terry, Ashley Cole, and Frank Lampard.

Club chairman Roman Abramovich reportedly agreed to the offer, signalling his willingness for the midfielder to leave the club for nothing, while Manager Carlo Ancelotti has only used the creative maestro sparingly this season.

The newspaper believes Manchester United are now odds-on favourites to sign Cole, and are ready to offer a three-year deal, with United manager Sir Alex Ferguson having long been an admirer of Cole's talent.

However, Manchester United are likely to face some competition from rivals Manchester City, who are willing to offer £80,000 a week.