Chelsea have reportedly reached an agreement to sign Lyon right-back Malo Gusto at the end of the season.

The 19-year-old has caught the eye of the Blues after breaking into the Lyon first team in the past couple of years, making 54 appearances for Les Gones and providing six assists.

Gusto has started 15 Ligue 1 matches for Laurent Blanc's side in the 2022-23 season, setting up one goal, but his contract is due to expire in the summer of 2024.

Both Chelsea and Manchester United have been tipped to do battle for Gusto's services, while Newcastle United have also been linked with a move for the teenager.

Chelsea quickly jumped to the head of the queue and are believed to have agreed personal terms with Gusto earlier this week, but Lyon president Jean-Michel Aulas recently expressed hope that the defender would stay until the end of the campaign.

"I can confirm that Malo [Gusto], a great hope for Lyon, will stay here at least until the end of the season," Aulas told L'Equipe, but The Athletic now reports that a deal has been agreed in principle.

The report states that the Blues will pay €30m (£26.3m) to secure the signature of Gusto, and he will indeed remain at Lyon for the rest of the season before joining Chelsea in the summer.

Gusto is expected to initially provide cover and competition for Reece James, who has made a mere 12 appearances in all competitions this season due to a pair of knee injuries.

Captain Cesar Azpilicueta has filled in for James in recent weeks, with Chelsea agreeing a new contract with the Spaniard until 2024 in the summer amid interest from Barcelona.

However, Azpilicueta - who has been dropped for Trevoh Chalobah in Chelsea's two most recent games with Liverpool and Crystal Palace - will turn 34 in August, and it is unclear if he will be offered an extension beyond the end of next season.

Gusto is set to become Chelsea's seventh signing of a hectic winter window, with Benoit Badiashile, Andrey Santos, Noni Madueke, David Datro Fofana and Mykhaylo Mudryk all signing permanent deals, while Joao Felix has joined on loan from Atletico Madrid.

Chelsea have also been tipped to bring in a new midfielder before Tuesday's transfer deadline and are believed to have reignited their interest in Benfica's Enzo Fernandez, but they have been swiftly knocked back by Benfica once more.

A move for Brighton & Hove Albion's Moises Caicedo has also been mooted, but Chelsea are said to have seen a £55m offer for the 21-year-old Ecuador international turned down by the Seagulls.

However, Caicedo - who was also the subject of a failed £60m offer from Arsenal - announced on social media on Friday that he wanted to leave Brighton, who are still holding out for a fee of £100m.

Chelsea are languishing in 10th in the Premier League table and are next in action at home to Fulham in a West London derby on February 3. body check tags ::