Chelsea have made an offer for Benfica midfielder Gedson Fernandes, believed to be an 18-month loan with an obligation to buy for £55m.
Chelsea's offer for Fernandes is dependent on the Portugal international midfielder playing at least 50 per cent of games during his loan spell at Stamford Bridge.
West Ham and Benfica have been in continued negotiations over the signing of Fernandes, with the Hammers' latest offer believed to be an 18-month loan with an obligation to buy for £33m.
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However, West Ham's percentage of games that would trigger the sale is less than Chelsea's and the final decision on where the 20-year-old will end up rests with Benfica and the player himself.
The midfielder is believed to favour a move to the Premier League and his preferred destination is understood to be London for family reasons.
Fernandes' release clause is £102m but Benfica have already conceded they will not get close to that figure for a player who is out of favour and is reported to have fallen out with head coach Bruno Lage.
How to follow the January transfer window
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day's news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don't miss a thing with our dedicated Transfer Centre blog.