Joao Felix could be returning to Chelsea

Chelsea have agreed a deal with Atletico Madrid to sign Joao Felix, according to reports, which could see midfielder Conor Gallagher move to the Spanish club.

Portugal international Felix had a six-month loan spell at Stamford Bridge from January 2023 and then spent last season with Barcelona.

Chelsea are reported to have agreed a £40million fee with Atletico which would see the 24-year-old make a permanent switch.

Joao Felix had a six-month loan spell at Chelsea during 2023 (Nigel French/PA)

The Premier League club have been contacted by the PA news agency, but were not available for immediate comment on the reports.

Felix’s arrival would then appear to open the door for England midfielder Gallagher to complete a move to Atletico, which stalled after Chelsea’s intended move for Samu Omorodion fell through.

Chelsea – who lost their opening Premier League match 2-0 against Manchester City at Stamford Bridge on Sunday – are also reported to have received a formal offer from Napoli for striker Romelu Lukaku.

Meanwhile, Raheem Sterling’s future at Chelsea is in doubt after new boss Enzo Maresca said he plans to clear up the former England winger’s situation in the coming days.

Sterling was left out of the Blues squad on Sunday, and his representatives released a statement questioning the decision.