Atletico Madrid want to extend Joao Felix’s contract at the club before loaning him to Chelsea.
Los Rojiblancos are locked in talks with the Premier League giants over a potential January deal for the Portuguese international.
Despite previous transfer interest from Arsenal and Manchester United, rivals Chelsea are now set to clinch a loan deal.
Reports from The Athletic’s transfer expert David Ornstein claim Chelsea and Atletico have a verbal agreement in place, with talks almost completed.
However, the chance of a purchase clause being included in the move appear to be reducing, with Atletico uncertain on what to do with the 23-year-old.
His current contract in the Spanish capital expires in 2026, and according to reports from Marca, Atletico want to extend that to 2027, before signing off a loan switch.
Atletico are looking to release a hefty wage from their salary bill in the second half of the campaign, to potentially allow Felix to rediscover his spark, without losing him permanently.