Chelsea have identified Monaco midfielder Tiemoué Bakayoko as their preferred replacement for Oscar, who is set to join Shanghai SIPG for a club record £60 million next month.

The France Under-21 international, who could cost about £40 million, is a different type of player to Oscar and Antonio Conte, the Chelsea manager, considers his physicality and athleticism to be far better suited to the needs of his squad.

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The club announced losses of £70.6 million yesterday for the year ending June 30 due to “exceptional costs” — including paying £40 million to cancel their kit deal with adidas — but that will have little impact on their transfer plans, particularly given the money they will raise by selling Oscar.

Michael Emenalo, Chelsea’s technical director, is