Huddersfield Town are among the Championship clubs keen on signing Trevoh Chalobah and they want to secure him on a permanent deal from Chelsea.
The 20-year-old is highly rated at Stamford Bridge but a permanent deal could be struck regardless as he has less than two years remaining on his contract.
Chelsea do have the option to loan Chalobah instead, but they would also try to extend his contract before sending him out for another season.
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Huddersfield are trying to refresh their squad following their relegation from the Premier League under Jan Siewert and they were impressed by Chalobah's performances on loan at Ipswich Town last season.
Chalobah, whose eldest brother Nathaniel left Chelsea two years ago to join Watford in a £5 million deal, played alongside a host of young stars who will get a chance under Frank Lampard next season in Chelsea's first team.
Chelsea have been so sure about James' talents that they rejected a £20m ($25m) approach, plus an extra £10m ($12m) in add-ons, from Crystal Palace, who looked to the 19-year-old to replace Aaron Wan-Bissaka after his £50m ($62m) transfer to Manchester United earlier in the summer.
Lewis Baker has been training at Fortuna Dusseldorf as Chelsea prepare to announce his loan move to the Bundesliga club following a successful spell at Reading in Championship last season.
Blues director Marina Granovskaia was keen to see what Baker could achieve in a top-five league, while Eddie Newton helped arrange the deal in one of his last moves as a loan coach at Chelsea. Lampard has since promoted Newton into the first-team coaching set-up.
Meanwhile, Baker is in contention to face Rayo Vallecano on Wednesday in Fortuna's latest pre-season friendly match.
Chelsea have already sent Ethan Ampadu on loan to RB Leipzig for the season, but there is no option to buy the highly-rated 18-year-old as part of their deal.
Lampard has gone on record to speak about his admiration for the Wales international and will be monitoring his development at the Bundesliga club, who will also play Champions League football next season.
Matt Miazga's return to Reading is expected to go through on Wednesday, too, after his efforts in getting the U.S. national team to a second-place finish in the Gold Cup this summer.