Both Arsenal and Liverpool are unwilling to match Southampton's valuation of midfielder Romeo Lavia, opening the door for Chelsea to potentially hijack the move.
Lavia is expected to leave Southampton this summer following their relegation from the Premier League. The teenager impressed for the Saints after making the switch from Manchester City, with his former teammate Theo Walcott hailing his "mad" potential.
"I'm a big fan," Walcott told talkSPORT back in January. "He's obviously had a few injuries but he's coming back. He's young, he's 18/19 when he's off the field but when he's on the field, it's mad.
"It's like he's played over 200 games in the Premier League, that's how much I rate him. It's very interesting to see, watching him from the stands, obviously it looks so easy from the stands, it always does.
"You probably know that watching us, 'he should make that run or make that pass', it's not as straightforward as that, but when I watch him, I'm like 'you look way above your age right now'. It's a good sign and hopefully we can keep him fit. They are all learning, but in particular he's learning quicker than normal I would say."
As a result, Lavia has attracted interest from Arsenal, Liverpool and Chelsea, and Southampton are holding out for a fee of around £50m to sell the midfielder, claim Sky Sports. However, Arsenal and Liverpool are 'unwilling to bid that high' having already committed big money on other targets.
Arsenal have signed Kai Havertz for an initial £65m and are close to competing a record move for Declan Rice, while Liverpool forked out £60m for Dominik Szoboszlai and an initial £45m on Alexis Mac Allister.
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The report states that Arsenal, who are also in talks over a move for Ajax defender Jurrien Timber, are 'conscious of their spending and have alternative targets' to Lavia. Liverpool, meanwhile, view the Belgian international as a 'long-term anchor' in their midfield alongside Szoboszlai and Mac Allister.
However, it is claimed they would need Southampton to lower their asking price and for Lavia to make it clear he wants to join Liverpool if they are to sign him. Chelsea are currently focused on their pursuit of fellow midfielder Moises Caicedo, but given they are unwilling to meet Brighton's £100m asking price they could turn their attention to Lavia.
The Blues 'have not concealed their interest' in the youngster and with Southampton demanding half of what Brighton want for Caicedo, Lavia represents a much cheaper deal. City, meanwhile, could always re-sign Lavia next summer if a move does not materialise owing to a buy-back clause in his deal which does not come into effect until 2024.