Joao Felix looks set for a return to Stamford Bridge after Chelsea agreed a £46.3m deal with Atletico Madrid to sign the Portugal international on a permanent basis. Felix spent six months on loan at Chelsea during the 2022/23 season. Conor Gallagher's move to Atletico now back on.

Chelsea have agreed a permanent deal worth up to £46.3m with Atletico Madrid to sign Joao Felix, which means Conor Gallagher's transfer to the Spanish club is back on.

Felix is understood to be joining Chelsea for a £42m fixed fee, plus £4.3m in add-ons, which could make the transfer eventually worth in excess of £46m.

The 24-year-old forward is scheduled to undergo a Chelsea medical on Tuesday and is expected to sign a six-year contract that includes the option for a further year.

The Portugal international was not named in the starting XI or on the bench for Atletico Madrid's LaLiga away game against Villarreal on Monday night after originally being included in the travelling squad.

The funds Atletico receive for Felix from the Blues will allow them to complete a deal for Gallagher.

Gallagher's £36m move to Atletico looked to have fallen through following the collapse of Chelsea's move for Atletico striker Samu Omorodion.

But the Spanish club remained determined to sign the 24-year-old England midfielder, having been impressed by him during his recent five-day stay in Madrid and how he handled the situation, which only reinforced their desire to have him in their squad.

Gallagher is now in discussions over travel plans to Madrid, but there is no rush considering what happened last time.

He passed a medical and agreed a five-year deal to join Atletico while in Madrid, and had been pictured in the Wanda Metropolitano by the club, before having to return.

Felix spent last season on loan at Atleti's LaLiga rivals Barcelona where he scored 10 goals in 44 appearances.

He also had six months on loan at Chelsea during the second half of the 2022/23 season, scoring four goals in 16 Premier League appearances.

Felix became the fifth-most expensive player in history when Atletico Madrid paid Benfica £113m for his services in 2019.

The Implications For Chelsea's Squad

The arrival of Felix is likely to add another dimension to Chelsea's attack, but it also raises questions about the future of other players in the squad. Raheem Sterling, who has been linked with a move away from Stamford Bridge, could be one player who is impacted by Felix's arrival. Sterling has already found himself falling down the pecking order on the left wing, and with Felix now in the fold, it seems likely that Sterling's time at Chelsea is coming to an end.

A Busy Transfer Window For Chelsea

Chelsea have been very active in the transfer market this summer, and Felix's arrival is just the latest in a long line of new signings. The Blues have also brought in several other players, including Pedro Neto, Christopher Nkunku, and Mykhailo Mudryk, who have already shown their quality in the opening game of the season against Manchester City.

Chelsea are clearly looking to rebuild their squad after a disappointing season, and they are willing to spend big money to do so. With the arrival of Felix, the Blues have added another world-class player to their ranks. It will be interesting to see how he performs in his second stint at Stamford Bridge.

What's Next For Gallagher?

Gallagher's move to Atletico now appears to be back on, and he could be a key player for Diego Simeone's side. The midfielder was impressive during his loan spell at Crystal Palace in the 2021/22 season, and he is expected to be a regular starter for Atletico.

The Future is Bright for Chelsea

With Felix and Gallagher set to join the club, Chelsea have a strong squad that is capable of challenging for trophies. The Blues have a new manager in Enzo Maresca, who is looking to implement a new style of play, and the team is looking forward to the new season.