Chelsea have rejected a new bid from Bayern Munich for Callum Hudson-Odoi as they attempt to convince him to commit his future to the club, with the England forward understood to be targeting a return to action from injury in early September.

The German champions had several approaches for the 18-year-old rejected in January, including an offer of £35m that was dismissed by Chelsea. But with Hudson-Odoi’s contract set to expire in less than 12 months’ time – meaning he will able to sign a pre-contract agreement with any foreign club in January – Bayern’s latest bid of £22.5m was designed to test the water as they attempt to rebuild their squad following the departures of Arjen Robben and Franck Ribéry.

The ruptured achilles Hudson-Odoi suffered against Burnley in April a few months after becoming the second youngest player to represent England’s senior side has complicated the situation, although he has been making significant progress following surgery and could be back in contention much sooner than had been anticipated.

Chelsea still have not given up hope of convincing Hudson-Odoi to sign a new contract at the club he first joined as a seven-year-old and are especially keen to retain him given their transfer ban, although they have yet to offer improved terms on the deal offered earlier this year.

Yet while Hudson-Odoi was granted more first-team appearances by Maurizio Sarri before his injury, the lure of joining Bayern remains strong and they are likely to return with an improved offer in the coming weeks after receiving encouragement from his entourage.

Talks with Frank Lampard over succeeding Sarri as manager are believed to be continuing, with a compensation fee of £4m with Derby expected to be no issue for the Stamford Bridge hierarchy.

Meanwhile, Leicester have confirmed the signing of the England Under-20 international James Justin from Luton for an undisclosed fee understood to be around £10m. The versatile full-back was named in the League One team of the year last season and has signed a five-year deal at the King Power to become Brendan Rodgers’ first signing since he replaced Claude Puel as manager.