LONDON, United Kingdom (AFP) — Chelsea are set to sign Atletico Madrid forward Joao Felix in a deal which could see Blues midfielder Conor Gallagher move to the Spanish club.

Chelsea are reported to have agreed a £40 million (US$51 million) fee with Atletico to bring the 24-year-old back to Stamford Bridge.

Felix had a disappointing six-month loan spell at Stamford Bridge in the second half of the 2022-23 season, scoring four goals in 20 appearances

The 24-year-old Portugal international, who spent last term on loan with Barcelona, is believed to have been offered a six-year contract by Chelsea.

Felix’s arrival could open the door for Gallagher to finally complete his move to Atletico after the England midfielder’s switch collapsed last week when Chelsea were unable to agree a deal for Madrid striker Samu Omorodion.

Atletico needed to sell Omorodion or another player to finance the move for Gallagher, who has trained alone since returning to Chelsea last week after being pictured in Spain ahead of his proposed £33 million transfer.

Chelsea, who lost 2-0 in their opening match of the Premier League season against Manchester City on Sunday, are also reported to have received an offer from Napoli for Belgium striker Romelu Lukaku.

Former Manchester United and Everton star Lukaku, 31, spent last season on loan at Roma.

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 to face City and his representatives released a statement questioning the decision.