What happened: Chelsea have agreed terms with Atalanta to sign right-back Marco Palestra for a reported €55 million, overtaking Inter Milan, who had led the race with a €50m bid. The agreement was reported by Fabrizio Romano, with manager Xabi Alonso said to have driven the move. Palestra is set to become the first signing of Alonso's tenure.

Why it matters: The deal signals a likely shift to a three-man defence, the setup Alonso used to win the Bundesliga at Bayer Leverkusen before favoring a back four at Real Madrid. Palestra projects as the first-choice right-wing-back, with the injury-prone Reece James moving to a right-sided centre-back role. His arrival could also accelerate the exit of Malo Gusto, who has been linked with Manchester City.

What to watch: Watch for an official announcement and medical, and whether Gusto's future moves quickly given the City interest.