Chelsea have agreed a deal in principle to sign Joao Felix from Atlético Madrid, sources have told ESPN, in a move which should now see Conor Gallagher complete his transfer in the opposite direction.

Talks have intensified in recent days with Atletico needing to move a player out before finalising a deal for Gallagher, who has been training away from the first-team group at the Blues’ Cobham base as he awaits news on his future.

The exact fee is currently unclear, but one source told ESPN the final package for Felix could be worth in the region of €50 million including add-ons. The Portugal international was not included in Diego Simeone’s squad for their LaLiga opener against Villarreal on Monday.

Sources have added that Felix has agreed a six-year contract with the option of a further 12 months to rejoin the club where he spent six months on loan last year, scoring four goals in 20 appearances.

Gallagher is now expected to travel to Madrid to complete a £34 million move, having already agreed personal terms and completed a medical.

Felix would become Chelsea’s 11th summer signing after Pedro Neto, Tosin Adarabioyo, Kiernan Dewsbury-Hall, Filip Jorgensen, Omari Kellyman, Aaron Anselmino, Caleb Wiley, Renato Veiga and Marc Guiu with Estevao Willian having agreed to join the Blues in 2025.

The 24-year-old’s imminent arrival will cast further doubt on Raheem Sterling’s status at the club after he was left out of Sunday’s Premier League opening weekend loss to Manchester City at Stamford Bridge.

Sterling’s camp issued a statement to ESPN in which he insisted he had developed a positive relationship with head coach Enzo Maresca having featured in all six pre-season matches, but wanted to “gain clarity on the situation” after his omission.

Christopher Nkunku, Mykhailo Mudryk and Neto were included in against City at Sterling’s expense.