The young star arrives in a deal worth an initial £40million, plus a further £5m in add-ons, to take the Blues’ summer outlay to more than £400m. He has signed a seven-year deal, with the option of an eighth.
Blues talent spotter Joe Shields has been key to their pursuit of the forward. Shields knows Palmer from his time as head of academy recruitment and talent management at the Etihad Stadium.
Palmer has been on the fringes of the City team under Pep Guardiola and they have decided to sell him after agreeing a £53m deal with Wolves for Matheus Nunes.
The 21-year-old is set to conclude Chelsea’s arrivals this summer, though plenty of fringe players are expected to leave.
Callum Hudson-Odoi is expected to join Nottingham Forest, having seen a deal with Fulham collapse earlier this month, while Tottenham continue to monitor Conor Gallagher in the event midfielder Pierre-Emile Hojbjerg leaves before Friday’s transfer deadline.
Bayern Munich remain locked talks over a move for Trevoh Chalobah but his £50m asking price could scupper a potential deal. Ian Maatsen continues to stall on a new contract offer amid interest from West Ham and Burnley. A decision on his future will likely run late into Friday.
Deivid Washington, a £17m summer signing from Santos, is set to leave Chelsea on loan, with Boehly’s new club Strasbourg linked, and Romelu Lukaku joined Roma on loan yesterday.