Chelsea have reportedly agreed for Jesse Derry to spend the season on loan at Sporting Lisbon.
The 18-year-old made the breakthrough into the Blues senior squad last season, accumulating a total of 78 minutes of action across three appearances.
However, the arrival of Xabi Alonso and Chelsea's lack of European football for 2026-27 threw the teenager's short-term future into doubt.
Reports have suggested that the likes of Bayern Munich and Juventus have been considering approaches for the England Under-19 international.
Instead, as per transfer expert Fabrizio Romano, it is Sporting Lisbon who have won the race for Derry's signature.
What are Jesse Derry, Sporting Lisbon loan conditions?
The report alleges that the Portuguese giants will cover the starlet's wages during his loan stint.
Nevertheless, there is no buy clause included in the agreement, with Chelsea planning on reintegrating Derry back into the first-team ranks for 2027-28.
Chelsea are said to have finalised a new long-term deal for someone who made 29 appearances for the Under-21s and UEFA Youth League side last season.
These teams are no strangers to conducting business with Chelsea having agreed deals for both Dario Essugo and Geovany Quenda in 2025.
Perfect move for Derry's development?
While Derry ultimately has ambitions to make a regular impression at Chelsea, he needs a platform to showcase his ability.
Although the former Crystal Palace youngster is not expected to be a regular in Sporting's starting lineup this season, there is scope for plenty of opportunities.
Sporting, who reached last season's Champions League quarter-finals, will only want to preserve their positive working relationship with Chelsea, and may have given guarantees over his game time.