Romano confirms Man Utd and Arsenal target will sign new contract with his current club

The saga surrounding Joao Felix has finally been resolved with the player opting to join Chelsea on loan, snubbing both Manchester United and Arsenal.

Felix has aired his grievances with Atletico Madrid manager Diego Simeone, expressing his desire to leave the club. And the pair's fractured relationship proved irreparable, with club CEO Miguel Angel Gil Marin admitting that due to their fall-out "it's reasonable to think that he might leave."

The Red Devils looked favourites to sign the 23-year-old after reportedly submitting a bid last week amid interest from the Gunners.

But with his future up in the air, Felix's destination is now confirmed, with Chelsea swooping in to steal the Portuguese star's services off Erik ten Hag's fingertips.

Felix joins extends Atletico contract

Interestingly, the midfielder has agreed to extend his contract with Atletico Madrid until 2027, according to transfer expert Fabrizio Romano. In doing so, Chelsea will not have an option to buy the player at the end of the campaign.

Fans will hope that by the time Felix returns to the Spanish capital, he will have made up with Simeone.

Chelsea have agreed a loan deal worth €11m (£9.7m) with the player's entire salary to be covered by the Blues. Their offer blew Manchester United's reported £3.5m bid out of the water, and was far closer to Atletico's asking price of £12m.

Romano added that "Joao will fly to London in the next hours to undergo medical tests and sign", in a post on Twitter.

Ten Hag may be left scratching his head as the Dutchman seeks cheaper alternatives following Cristiano Ronaldo's exit. Although, the club look set to sign former Burnley striker Wout Weghorst, along with out of favour Barcelona star Memphis Depay.

Meanwhile, Mikel Arteta is thought to be prioritising Shakhtar Donetsk winger Mykhaylo Mudryk as he looks to retain top spot in the Premier League. Fans will be praying that Chelsea don't hijack that transfer too, with Blues sporting director Todd Bohely said to be interested in the 23-year-old.

Felix will become Graham Potter's fourth signing this January, adding to David Datro Fofana, Benoit Badiashile and Andrey Santos. French striker Christopher Nkunku has also agreed to join Stamford Bridge next summer.