The Blues were linked to the Spanish striker before he made the return to Madrid this summer.
The Real Madrid striker returned to the Bernabeu from Juventus for a fee of £30 million after the La Liga giants exercised their buy-back option in his contract with the Serie A champions.
Chelsea had reportedly opened talks with the Spain international this summer, and he was believed to be a top target for Blues manager Antonio Conte.
But Morata decided to stay with Los Blancos and compete for a place in Zinedine Zidane's first team, and he has now revealed the extent to which he came close to securing a move to Stamford Bridge.
Speaking to German publication Sport Bild, Morata said, as quoted by the Telegraph: "Chelsea showed the most interest. Antonio Conte had already signed me for Juventus.
"And it was a very good offer this time. I would have been the most expensive Spanish player ever.
"[But] Real said that they have me in their plans, and that was always a dream of mine.
Morata, who finished Euro 2016 as Spain's top goalscorer, has started the season well for Real Madrid, with two goals in six games in all competitions.
Arsenal were also heavily linked with the 23-year-old throughout the summer, and Morata's comments suggest that both Premier League clubs would have had to break the bank to secure his services.
Have something to tell us about this article?