Chelsea have pulled off an incredible transfer coup by agreeing an initial fee of £58million with Real Madrid for Alvaro Morata.

In a statement on their website on Wednesday night, Chelsea confirmed Telegraph Sport’s earlier report that a deal with Madrid has been agreed and Morata will now discuss personal terms and undergo a medical.

Chelsea did not reveal the size of the fee, but Telegraph Sport understands the Premier League champions will pay an initial £58m before add-ons.

That is almost £20m less than the initial £75m Manchester United paid for Romelu Lukaku, who had been Chelsea’s top target.

Sources close to the deal believe Chelsea have struck a superb deal for Spain international Morata in the current transfer market, where fees have spiralled out of control.