Chelsea have reportedly made good progress in talks with AC Milan over a swap deal involving Alvaro Morata and Gonzalo Higuain.

Blues boss Maurizio Sarri is believed to have targeted Higuain ahead of the January window, having previously worked with the striker at Napoli.

A possible player-for-player transfer has been mooted over the past week, with Morata said to be keen on making a return to Italian football, two years after leaving Juventus.

Italian outlet Sports Mediaset suggests that Chelsea transfer chief Marina Granovskaia has been put in charge of negotiating a deal with Milan, and Higuain's departure from San Siro is now inevitable.

Only a few more details need to be agreed upon before the sides can shake hands, it is claimed, with Higuain likely to make the switch to West London on an initial six-month loan, while Morata's move will be an 18-month deal.

Due to the Argentina international still officially being contracted to Juventus, Chelsea would then have to agree a fee with the Serie A champions to bring the former Real Madrid ace on board permanently.