Wolves are close to completing the signing of Chelsea-linked youngster Pedro Lima.
The Blues have signed a number of young talents over the past two years and had been eyeing a move for the 17-year-old right-back.
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However, Premier League club Wolves appear to have won the race for his signature after agreeing an agreement with Brazilian club Sport Recife.
In a statement to X, the Brazilian second division club said: “Sport Club do Recife announces that it has signed a binding agreement for the transfer of the economic and federative rights of the athlete Pedro Lima from England to Wolverhampton Wanderers.
“The agreement is subject to the usual conditions, including the athlete’s consent to medical examinations carried out by the English club.
“President Yuri Romao and the Football Management Committee will detail the operation in a statement once all business-related actions have been completed.”
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According to The Athletic, Lima has agreed a five-year contract with Wolves with the possibility of a further year extension. The deal is said to be worth around £12.7 million.
He is due to arrive at the club on July 1 to complete the medical and move, following Rodrigo Gomes and Tommy Doyle in a permanent move.
It is also said that Chelsea signed Lima with the intention of sending him first to Strasbourg, a sister club of owners BlueCo.
Young Blues players Angelo and Andrey Santos played for the Ligue 1 team on loan last season to support their development.
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But the west Londoners are likely to miss out on Lima, who made his Sport Recife first-team debut in January.
He played a total of 26 games for the club and also played five times for the Brazilian U17 team.
Like Wolves, Chelsea have already made their first summer signing when they welcomed Tosin Adarabioyo on a free transfer at the beginning of June.
The Pitch Prospect has learned that the Blues have also entered into talks with Crystal Palace over a move for winger Michael Olise.