Chelsea are ready to submit a €100million offer to AC Milan in January for the transfer of Portugal international Rafael Leao, according to Italian media outlet Corriere Dello Sport.

On top of that, the Blues are ready to pay the player’s due of a reported €20m compensation to his former club Sporting CP to settle the ongoing ownership issue.

Leao, 23, currently earns around £28,000-a-week at AC Milan and Chelsea are prepared to pay the winger a ‘monstrous salary’ to make the move to Stamford Bridge.

Leao is entering the final 18 months of his deal at the San Siro. While Milan have been locked in talks with Leao’s entourage, the parties have yet to find an agreement over the terms of an extension on the winger’s current deal.

The report explains there are ‘alarms’ ringing in Milan as the Italian outfit brace a mega winter offer from Chelsea for their Portuguese star in January.

Meanwhile, according to transfer expert Fabrizio Romano, Chelsea are set to sign winger Wilfried Zaha from Crystal Palace as a free agent.

Despite being 30, Zaha is reportedly seen as an upgrade on Chelsea stars Christian Pulisic, Kai Havertz and Hakim Ziyech.

“Crystal Palace will try until the end to keep Wilfried Zaha, but yes, I’m told a free transfer is now a serious possibility and the most likely solution. He’d move for an important club, but I think before January nothing will be resolved,” Romano told CaughtOffside.

“I’ve revealed before that Roma showed an interest in him last summer, but we’ll see about 2023. For sure, playing regularly will be a priority for him and his decision.”