Joao Felix is on the verge of signing a loan agreement with the Blues.
The Blues are set to beat their rivals to the signing of the Portugal forward with neither of them willing to pay the 11m loan fee.
Felix would provide a much-needed boost to Graham Potter's attacking options, with his side scoring just 20 goals in 17 league matches this season.
Despite the transfer window only being open for a few days, the Blues have already signed several players.
Potter hopes their arrival will help improve his team's form, with just one win from their last seven matches.
The Blues are currently 10th in the league and have been knocked out of two cups.
The only realistic hope of silverware this season for the west London club is in the European competition, where they face off against the team from Germany in the last 16.
Felix was in the starting XI for the defeat at home to Barcelona on Sunday.
Felix, who has five goals and three assists in all competition this season, will be allowed to leave for a loan in January because of his difficult relationship with his boss.
There was a 126m deal between the two sides in 2019.
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Sky sports chief reporter.
Felix's wages need to be taken into account. He makes more than $250,000 per week so he would have to make up the difference.
They have a strategy this month, even though they have been criticized for spending so much money.
Felix is what they want to sign, I think. They would like a right-back and a player in the middle of the field.
Sky sports reporter.
Both parties would likely benefit from this deal. When they can see what other options are out there, they might look to the summer.
The price for Felix was close to 120 million dollars. They wouldn't get anything close to that money if they included an option price or sold him now.
When they eventually sell him, it's likely they won't get anywhere near that money, but if he performs well for six months, he can go back to Atleti with three years left on his contract and maybe his value is higher.
"Manchester United were interested in signing him, as well as the other team."
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Sky sports journalist Joe Shread.
Todd Boehly has already shown he is more than willing to spend in order to improve Graham Potter's squad.
The problem of finding the back of the net is a serious one, with only two players in the entire competition who have scored more than three times.
The lack of chances being created is an even bigger issue than the need for more goals in Potter's squad.
Their forwards are not performing as badly as it may seem, as they rank a lowly 15th for expected goals in the premier league.
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Felix should be able to help with the issues in the final third if he hits the ground running in west London.
He ranks in the top 12 in the Spanish top flight for both goals and assists per 90 minutes despite starting just seven LaLiga matches.
Felix is a versatile forward with the ability to play as a No 10 or on the flanks, something that will appeal to Potter.
Questions will be asked about the decision to bring in Felix if they don't get an option to buy the Portugal international.
The second half of the season should be about building for the future, because silverware is out of the question this season.
Is it necessary for Felix to take a place in the team of someone who will be next year?
This winter, who will be moving? The January transfer window closes at 11pm on January 31st.
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