Wolves are ready to complete the signing of young Pedro Lima, linked to Chelsea.
The Blues He has signed several young talents in the last two years and had been considering a move for the 17-year-old right-back.
However, his Premier League teammate Wolves He appears to have won the race for his signature having sealed an agreement with Brazilian club Sport Recife.
In a sentence in XThe Brazilian Second Division team said: “Sport Club do Recife announces that it has signed a binding agreement to transfer the economic and federative rights of the athlete Pedro Lima to Wolverhampton Wanderers, of England.
“The agreement is subject to the usual conditions, including the athlete's approval of the medical examinations carried out by the English club.
“President Yuri Romao and the football management will detail the operation in a statement when all acts related to the business have been completed.”
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The Athletic reports that Lima has agreed personal terms on a five-year deal with Wolves which can be extended for a further year, and that the deal will cost around £12.7m.
He is due to arrive at the club on July 1 to complete his medical and move, following Rodrigo Gomes and Tommy Doyle in a permanent move.
It is also said that Chelsea would have signed Lima with the intention of initially sending him to Strasbourg, sister club of the owners BlueCo.
Blues youngsters Angelo and Andrey Santos played on loan with the Ligue 1 side last season to help their development.
But the west London side look set to miss out on Lima, who made his senior debut for Sport Recife in January.
He has made a total of 26 appearances for the club and also featured five times for the Brazilian under-17 team.
Like Wolves, Chelsea have already made their first summer signing. welcomed Tosin Adarabioyo on a free transfer at the beginning of June.
talkSPORT understands the Blues too open conversations with Crystal Palace due to a play by winger Michael Olise.