Atletico Madrid are growing in confidence they can strike a deal with Chelsea for Conor Gallagher.

Chelsea are locked in new talks with the Spanish side, who are ready to offer a fee in the region of £34million.

Atleti chiefs now hope that will be enough to convince Chelsea to sell, who had been looking for a higher fee earlier this summer.

Chelsea had rejected out of hand Atletico's first set of proposals at the start of the transfer window, but now the Madrid men have returned with improved offers.

Gallagher has entered the final year of his Chelsea contract, and the Blues remain open to selling the England star.

The Chelsea academy product has been keen to stay at his home club, but is thought to be considering his options carefully amid Atletico's interest.

The Madrid side may have some work to do to convince Gallagher to leave west London, but now sit in pole position for any transfer.

Tottenham have tracked Gallagher for months but have not progressed their interest.

Gallagher is on holiday after his Euro 2024 exploits with England, so has not joined Chelsea’s pre-season tour in the US.

Chelsea are continuing to overhaul their playing resources under new owners Todd Boehly and Clearlake Capital, and have also spent the summer modifying the senior squad for new head coach Enzo Maresca.

Gallagher was a regular starter at Chelsea last term under Maurico Pochettino, frequently captaining the Blues in the injury absence of club skipper Reece James.

Chelsea’s new owners have invested heavily in midfield options like Enzo Fernandez, Moises Caicedo and Romeo Lavia however.

And that influx of talent has left the Blues bosses amenable to selling Gallagher.