Chelsea have agreed to release Maurizio Sarri to Juventus after finally agreeing a compensation package that could be worth over £5million.

And that will now free the Blues to step up talks over a potential return to Stamford Bridge for club legend Frank Lampard.

Juventus had hoped to take Sarri back to Italy without having to pay any compensation, believing Chelsea were happy to let their head coach go.

But, despite almost sacking him twice last season, Chelsea were determined that Juventus should pay up Sarri’s contract.

Sarri had one year, worth around £5m, on his deal, with the option of a further 12 months. It is understood that Juventus will have to pay more than £5m if certain bonuses are met while the 60-year-old is in charge. The final figure could be as high as £8m.

Chelsea have agreed to let Sarri go after just a year in charge after he informed them that he wanted to return to Italy after winning the Europa League.

Sarri will leave Chelsea having won the Europa League in his final game credit: PA

It is also understood that Sarri expressed a desire to return to his native country on at least two different occasions during the season, when he was facing difficulties.

That resulted in fears over Sarri’s commitment and how a second season might go, particularly if he started badly.

The fee received for Sarri should more than cover any compensation needed to buy Lampard out of his Derby County contract if he is deemed the right man to step in.

Lampard has a number of backers inside Stamford Bridge and, despite some fears over the fact he has managed for just a year with Derby in the Championship, sources put the chances of his return as high as 80 per cent.

Chelsea’s young players have been excitedly exchanging messages over the prospect of Lampard and his assistant Jody Morris returning, and what it would do for their playing prospects.

Frank Lampard is now expected to return to Chelsea credit: Reuters

As reported by Telegraph Sport, Chelsea may have little option but to offer Lampard the job with a number of their alternatives potentially out of reach.

Ajax coach Erik ten Hag has admirers within Chelsea, but Dutch sources expect him to stay in Amsterdam for another year and also believe Bayern Munich may be a more attractive job offer for him.

Former Juventus manager Max Allegri has also confirmed he will take a year out of football, saying: “I'm going to take a year off to recharge the batteries and take my personal life back in hand. The last 16 years have felt like being in a spin-dryer.”

While some supporters will be sad to see the back of Sarri, who secured Champions League qualification with a third-placed finish, as well as winning the Europa League, there will be excitement over the prospect of Lampard’s return.

Chelsea officials were shocked to hear supporters chant against Sarri and his style of football, and the connection between Lampard and the fans is something that will certainly work in his favour.

Sarri’s exit does, however, mean Chelsea have lost their head coach and star player in the last week, and also face a two-window transfer ban.