Chelsea transfer news: Xabi Alonso's first signing could open door for Blues to sell 23-year-old to Man City

Chelsea are reportedly on the verge of announcing the signing of Atalanta BC defender Marco Palestra.

The 21-year-old had an impressive loan spell at Cagliari last season, representing Gli Isolani on 37 appearances in Serie A, and Inter Milan have been heavily linked with a move for him.

However, Chelsea have now moved ahead of Inter, with Palestra expected to become Xabi Alonso's first signing since being named the London club's new head coach.

According to BBC Sport, Chelsea will pay a transfer fee in excess of £43m for a player who is seen as a multi-functional full-back and wing-back.

Inter have allegedly been unable to come close to Chelsea for personal terms, and Palestra has now agreed to make the switch to the Premier League club.

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Alonso's first signing: Chelsea 'agree' Palestra deal

Palestra made 16 appearances for Atalanta ahead of his loan switch to Cagliari, while he has been capped twice by the Italian national team.

Chelsea have already sold Marc Cucurella to Real Madrid this summer, but according to journalist Ben Jacobs, another first-team full-back could leave Stamford Bridge.

Jacobs claims that Manchester City have an interest in Malo Gusto, and Chelsea have not ruled out a departure for the 23-year-old, having agreed a deal for Palestra.

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Man City 'target' Gusto in £45m transfer

Gusto has made 134 appearances for Chelsea since his arrival from Lyon, including 49 outings during the 2025-26 campaign, scoring three goals and registering five assists.

The Blues are said to value the Frenchman in excess of £45m, but it remains to be seen how much Man City are prepared to pay for his services this summer.

Gusto has scored three goals and set up 17 more in his 134 appearances for Chelsea, but his form was criticised during a difficult 2025-26 campaign for the Blues.

There is expected to be a lot of movement both in and out of Chelsea this summer, and the club could face a difficult call over Enzo Fernandez's future, as Real Madrid continue to be linked with a big-money move for the Argentina international.