Chelsea have accepted a £33 million ($42.42 million) bid before add-ons from Atletico Madrid for Conor Gallagher after the midfielder rejected a new contract offer to stay at Stamford Bridge, sources told ESPN.
The 24-year-old has yet to reach a personal agreement with the LaLiga club and will decide his future in the coming days while negotiations continue.
Gallagher has one year left on his contract at Stamford Bridge and the Blues are determined not to lose him on a free transfer when his deal expires next summer, as was the case with Andreas Christensen and Antonio Rüdiger, who joined Barcelona and Real Madrid respectively, in 2022.
Sources said Chelsea's new proposal to Gallagher was a two-year deal with the option of a third season and included a significant pay rise.
Gallagher has previously turned down a move to Aston Villa, while Tottenham have also been monitoring his situation for several months.
Also on Wednesday, sources told ESPN that Atletico Madrid are in talks with Villarreal over the transfer of Alexander Sørloth after a deal for Girona striker Artem Dovbyk fell through.
Atletico are understood to have had an agreement in place for Dovbyk to replace Alvaro Morata last week but negotiations broke down after his agent raised his financial demands at the last minute.
ESPN's Rodrigo Faez contributed to this report.