Callum Hudson-Odoi will refuse to sign a new deal at the club and he is prepared to run his contract down and quit Stamford Bridge for next to nothing if the hierarchy continue to block his move to Germany.
Hudson-Odoi is frustrated by a lack of first-team opportunities this season under Maurizio Sarri and fears he will not receive the regular football required at Stamford Bridge in order to develop into a world-class footballer.
are prepared to pay £35m for the 18-year-old winger but Chelsea have so far repelled the advances of the German club.
Hudson-Odoi has decided that he will not agree a new deal and is growing exasperated by the club's refusal to sell him. The player has no intention of going on strike or refusing to play for Chelsea but he does want the club to respect his wishes.
Chelsea are actually yet to make a firm contract offer to Hudson-Odoi, as most discussions so far have centred on whether the club can persuade the player to remain in London.
His contract expires in the summer of 2020 and as such, Hudson-Odoi is now prepared to wait and leave in a cut price deal this summer or even secure a pre-contract agreement in January next year. The teenager's idea resolution remains a move to Bayern this month.
Should Chelsea stand their ground, Hudson-Odoi will not buckle. He could hold out for a year and, in January 2020, he can negotiate freely with overseas club as only six months will remain on his contract.
This would mean that Chelsea would be entitled only to FIFA's training compensation fee, which industry insiders believe will amount to less than £500,000.
If Hudson-Odoi was to move to a different Premier League club, Chelsea would receive a major payout via an arbitrations panel but the system operates differently when a player moves abroad under the age of 24 and Chelsea would receive a relative pittance under FIFA's guidelines.
David Seligman, a sports lawyer at Brandsmiths, told Sportsmail: 'If the player were to leave at the end of his contract then the Profession Football Compensation Committee would not have any jurisdiction to determine compensation due to Chelsea and only the FIFA's regulations concerning Training Compensation will come into play.'
If Hudson-Odoi agrees a pre-contract agreement next January, Bayern would be duty bound to pay Chelsea a fee for every year he has trained at the club since the age of 12 but even this is estimated to come to less than £500,000.
Sportsmail first revealed in November that Hudson-Odoi was refusing to commit to Chelsea and wanted a major show of faith by Sarri in the form of regular first-team football in December. He has played just over 50 minutes of Premier League football all season.
Sarri did hand Hudson-Odoi starts in the recent FA Cup match against Nottingham Forest and then the Carabao Cup semi-final against Tottenham but the player was then dropped to the bench for the weekend victory over Newcastle. It is also felt that Sarri has also been forced into playing with Hudson-Odoi by a combination of injuries and the growing pressure of Bayern's interest.
The teenager has previously been extensively scouted by Barcelona but the dream is to move to Bayern Munich and follow in the footsteps of friend Jadon Sancho, who has thrived at Borussia Dortmund.