Chelsea and Atletico Madrid are on the verge of concluding a deal that would see Atletico's Portuguese international forward Joao Felix spend the rest of the season on loan at Stamford Bridge.

The clubs have agreed a loan fee of around 10 million euros, without the English club having an option to make the move permanent at the end of the campaign.

A move would be mutually beneficial for both Atletico and Chelsea, with stories of the 23-year-old's poor relationship with Atletico coach Diego Simeone a constant in the Spanish sporting press.

Joao has started just seven of Atletico's 16 La Liga games this season, playing just under 650 minutes competitive football and scoring four goals, while he failed to hit the target in any of his five appearances in Atletico's disastrous Champions League campaign.

Chelsea are looking for a signing to help reignite their season after a run of eight Premier League matches without a win has seen them drop to mid-table and put a place in Europe for next season in real jeopardy.

The side coached by Graham Potter was also humiliated 4-0 by Manchester City at the weekend to crash out of the FA Cup at the first hurdle.

Potter's job has not been helped by injuries to Raheem Sterling, Christian Pulisic and Pierre-Emerick Aubameyang, who missed the weekend's defeat with a back complaint.

Chelsea are also thought to be chasing Benfica's World Cup winning midfielder Enzo Fernandez, although Benfica have said they are not willing to negotiate Fernandez's sale and the player will only leave if Chelsea meet the 120 million euro buyout clause.

Chelsea's next match is a derby against near neighbors Fulham on Thursday.

Elsewhere, bottom of the table Southampton have agreed a 14 million euro fee with Racing Club to sign 20-year-old Argentina youth international Carlos Alcaraz. 

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