Chelsea have reached an agreement with Benfica to sign Argentina World Cup star for €130million, according to Felix Johnston of Chelsea Loan Army.

According to the report, Chelsea will pay Benfica €120million in three instalments with another €10million in performance related add-ons.

The performance related add-on includes Chelsea winning the Premier League and Champions League.

Fernandez has already agreed personal terms with Chelsea and is now set to arrive in London over the next few days to undergo his Chelsea medical.

Fernandez, 21, only joined Benfica from Argentine club River Plate last summer for a fee of around €10million but is keen on joining Chelsea this January.

Meanwhile, super-agent Jorge Mendes has offered Atletico Madrid star Joao Felix to Chelsea, according to The Athletic.

Atletico are believed to be seeking a €21million (£18.6m; $22.5m) package, comprising a €15m loan fee plus €6m gross salary.

The report adds that Chelsea are interested in signing Felix on loan in January but the Blues are prepared to pay less than half of the €15million loan fee that Atletico Madrid are demanding.

Chelsea are happy to pay his €6million salary until the end of the season but want to pay a loan fee of less than €7.5million instead of the €15million that Atletico Madrid are demanding.