Wolves are set to complete 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.
However, fellow Premier League side Wolves appear to have won the race for his signature having sealed an agreement with Brazilian club Sport Recife.
In a statement on X, the second-tier Brazilian side said: “Sport Club do Recife announces that it has signed a binding agreement to transfer the economic and federative rights of athlete Pedro Lima to Wolverhampton Wanderers, from England.
“The agreement is subject to customary conditions, including the athlete’s approval of medical examinations conducted by the English club.
“President Yuri Romao and the football management committee will detail the operation in a statement when all acts related to the business have been completed.”
READ MORE ON TRANSFER NEWS
The Athletic reports that Lima has agreed personal terms on a five-year contract at Wolves which can be extended by another year, with the deal set to cost around £12.7million.
He is set 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 to initially send him to Strasbourg, a sister subsidiary club of owners BlueCo.
Blues youngsters Angelo and Andrey Santos played on loan at the Ligue 1 side last season to help aid 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 Brazil’s U17 side.
Like Wolves, Chelsea have already made their first summer signing as they welcomed Tosin Adarabioyo on a free transfer earlier in June.
talkSPORT understands the Blues have also opened talks with Crystal Palace over a move for winger Michael Olise.