Chelsea have reportedly agreed personal terms with Lyon right-back Malo Gusto.
The Blues have been active in the January transfer window, strengthening their squad with six new additions.
Noni Madueke, Mykhaylo Mudryk, Benoit Badiashile, Andrey Santos, David Datro Fofana have all joined on permanent deals, while Joao Felix has arrived on loan from Atletico Madrid.
Although they have spent near to £150m this month, Chelsea are still looking to make further signings before the transfer window shuts next week.
With first-choice right-back Reece James hampered by injuries and Cesar Azpilicueta struggling to find his best form, the Blues are keen to bolster their right side of the defence.
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In Chelsea's last two Premier League games, Graham Potter has utilised Trevoh Chaloboh as a makeshift right-back, instead of Azpilicueta, who is out of contract in June 2024.
Chelsea have identified Gusto as a potential candidate to add strength in depth to their backline, and they are keen to complete a transfer during the current transfer window.
According to football.london, Chelsea have already agreed personal terms with the 19-year-old ahead of a potential transfer.
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Although their initial bid has reportedly been rejected, they appear to be leading the race for Gusto's signature.
However, they are facing competition from Manchester United, who are believed to be trying to hijack Chelsea's move.
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While the Red Devils are unlikely to sign Gusto in January due to a lack of funds, they have urged the player "not to rush his decision" as they eye a potential summer transfer.
Chelsea could also face another stumbling block, as Footmercato claims that Lyon would want Gusto loaned back for the remainder of the season, which is something the Blues would be reluctant to agree to.
As well as attracting interest from Chelsea and Man United, fellow Premier League side Newcastle United are also believed to be among his admirers.
The France Under 21 international, who is under contract until June 2024, has featured regularly for Lyon, starting 15 of the club's 19 Ligue 1 matches, contributing with one assist.
Although he is yet to score a senior goal for his club, he has registered six assists across his 54 appearances for the first-team after progressing through the Lyon academy.