Southampton are in advanced talks with Chelsea to secure Lesley Ugochukwu on a season-long loan, according to The Athletic.
The agreement will not include an option for Southampton, who are newly-promoted to the Premier League, to purchase Ugochukwu permanently.
Despite several inquiries, Chelsea have ruled out a sale of the 20-year-old midfielder.
Chelsea view Ugochukwu, who joined from Rennes a year ago, as a key part of their long-term strategy.
They believe he has similar attributes to Real Madrid’s Aurélien Tchouaméni.
The Blues rate Southampton and head coach Russell Martin highly, considering the move ideal for Ugochukwu’s development.
In west London, it’s thought that Southampton’s system and football philosophy align well with the approach Chelsea and Enzo Maresca plan to implement at Stamford Bridge.
Chelsea were evaluating loan options for Ugochukwu, with a preference for a temporary move to another Premier League club.
Ugochukwu was recalled from representing France’s Under-23s at the Olympic Games and continued to feature regularly in pre-season, including scoring against Inter Milan at Stamford Bridge on Saturday.
Chelsea acquired Ugochukwu for approximately €27.5 million (£23.5 million) last summer, signing him to a seven-year deal with an option for an additional 12 months.
He appeared frequently in Mauricio Pochettino’s squads during the first half of the season and made 13 first-team appearances before a hamstring injury in December sidelined him until May.
Southampton will kick off their Premier League campaign at Newcastle United on Saturday, while Chelsea will host Manchester City the following day.
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