Chelsea have agreed to buy Mateo Kovacic for £40.3 million from Real Madrid.
The west London club exercised an option in the contract of the Croatia midfielder when he joined on loan last season. Because Chelsea hold his registration they are able to sign him on a permanent deal despite being under a Fifa transfer ban for two windows, having been found guilty of breaching rules over the acquisition of the registration of under-18 foreign players.
Chelsea had to trigger the option before Monday and are paying lower than the £44.7 million option price in the loan contract. They hope to announce the deal for the 25-year-old by the weekend. According to reports in Spain, the signing was approved by Frank Lampard.