Breaking news in Brazil this evening suggests that long-term youth target Lucas Piazon has agreed to join Chelsea from Sao Paulo when he turns 18, for a reported fee of €7.5m.

The website “Lance!net” initially reported that the teenager, currently playing for Brazil in the South American Under-17 Championships, will join the Blues ahead of competition such as Juventus, who were believed to have agreed a deal to sign him earlier this year.

The news has since been confirmed by Sao Paulo themselves, with club officials noting that the transfer fee will be broken down to include payments to the club, the player and his agent.

Touted as ‘the new Kaka’, Piazon was initially linked with a move to West London two years ago as a fifteen year-old, and has since gone on to impress in Sao Paulo’s youth teams.

He is set to travel to England at the end of the current international tournament for medical tests and to sign paperwork, before arriving at the end of the year, in line with FIFA laws, as he will turn 18 in January 2012.

More on this story as it develops, and you can follow the breaking news live on Twitter by following @chelseayouth.