AC Milan have agreed in principle to take Chelsea's Joao Felix on loan for the rest of the season.
Chelsea are set to receive a £5m fee from Milan and the Italian club have agreed to cover the Portugal international's wages.
Milan have held an interest in Felix throughout the transfer window and reports in Italy say he was watching the Milan derby on Sunday at San Siro.
The 25-year-old is set to depart Stamford Bridge on Deadline Day six months after signing permanently from Atletico Madrid for £46.3m.
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Felix has six-and-a-half years left on his Stamford Bridge contract. The Portuguese forward has scored seven goals in 20 games since re-joining Chelsea in the summer.
Aston Villa were interested in signing Felix this January with the club's president of football operations Monchi publicly announcing Unai Emery's interest in the player.
But it is understood the Portugal international is now likely to move abroad, with Villa instead moving for Marcus Rashford and Marco Asensio.
'Felix unhappy over game time'
Sky Sports News' Kaveh Solhekol:
"Joao Felix will not be involved in Chelsea's game with West Ham on Monday Night Football as is he is set to join AC Milan on loan.
"The player moved here for a second time from Atletico Madrid in the summer. It was around the same time Conor Gallagher moved from Chelsea to Atletico in the opposite direction.
"He was not very happy at Stamford Bridge in his second spell because he was not playing regularly. He wants more game time and I don't think he was going to get that at Stamford Bridge.
"His agent is Jorge Mendes, the Milan manager Sergio Conceicao's agent is also Jorge Mendes. So the super agent was trying to find him a new club.
"Aston Villa were interested in signing him but Chelsea weren't able to agree a deal with them. But a deal to take him to Milan is now very close."
Blues reject Nkunku loan bid from Man Utd
Chelsea rejected a late loan bid from Manchester United for striker Christopher Nkunku on Sunday.
The French forward did not want to leave on loan in this window and an approach was knocked back anyway by the Blues.
Having loaned out Marcus Rashford and Antony, added to United's goalscoring issues, United's endeavour had been to bring in a forward on a temporary deal.
The pursuit of Mathys Tel has proved a futile negotiation as it stands. The Bayern Munich forward agreed to join Tottenham on Deadline Day.
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(c) Sky Sports 2025: Joao Felix: Chelsea forward set to move to AC Milan on loan six months after re-joining Blues