However, negotiations have now stalled, with the clubs unable to agree on the length of the deal.
According to reports, Chelsea’s plan to loan Andrey Santos to Brazilian club Palmeiras has been thwarted.
Santos joined Chelsea for £18 million in the January transfer window, but he has been denied a work permit and is currently unable to play for the club.
Chelsea had intended to integrate the midfielder into Graham Potter’s first team as soon as possible, but are now forced to loan him out.
The Blues, who signed Santos from Vasco da Gama, have discussed sending the 18-year-old back to Brazil to join Palmeiras.
However, negotiations have now stalled, with the clubs unable to agree on the length of Santos’ loan deal, according to the Evening Standard.
Palmeiras wants to keep the Brazil U20 international until December, but Chelsea wants him back in the summer before the 2023-24 season.
If talks with Palmeiras fall through, Atletico Mineiro and Internacional are thought to be potential destinations.
Chelsea could insert a €1.5m (£1.3m) recall clause in their contract with Palmeiras, but this would mean even more spending for a team that has already spent over £600m since the summer under new owner Todd Boehly.
Santos was one of eight players signed by the west London club during the January transfer window, which included permanent deals for Enzo Fernandez, Mykhailo Mudryk, Benoit Badiashile, Noni Madueke, Malo Gusto, and David Datro Fofana, as well as the loan signing of Joao Felix from Atletico Madrid.
‘It’s a very big opportunity for me,’ Santos said after completing his move to Chelsea last month.
‘I am very excited because this is a big club competing in big competitions like the Premier League. The players here are fantastic, and I am thrilled to be here.’