Chelsea have identified Cagliari midfielder Nicolo Barella as a January transfer target as they prepare for the departure of Cesc Fabregas.

And the Blues are stepping up their bid to try to complete a complicated deal that would see Gonzalo Higuain move to Stamford Bridge, with Alvaro Morata potentially joining AC Milan on loan.

The FA Cup third-round tie against Nottingham Forest is set to be the final appearance of Fabregas for Chelsea before he completes a move to Monaco.

Blues head coach Maurizio Sarri has made it clear that the club needs to sign a replacement for Fabregas this month and sources have confirmed that Barella is on their radar, although it is unclear whether or not the 21-year-old would join immediately or in the summer.

Cagliari want £45 million for Barella and Chelsea face competition from Sarri's former club Napoli and Inter Milan for the signature of the player, who has been compared to former Liverpool midfielder Steven Gerrard in Italy.