Chelsea complete £42.5m Palmer deal

Free-spending Chelsea have signed young English prospect Cole Palmer from Manchester City for a reported fee of £42.5m.

The 21-year-old, who helped England's Young Lions win the U21 Euros this summer, has penned a seven-year contract with the Blues that contains the option of a further 12-month extension.

According to Sky Sports, Chelsea will pay £40m upfront for the attacking midfielder, with the remaining £2.5m due in add-ons. 

After completing the move early on transfer deadline day, Palmer told Chelsea's website: "I’m excited to get started and it feels great to sign.

"I’ve joined Chelsea because the project here sounds good and because of the platform I will have to try to showcase my talents. 

"It is a young and hungry squad and, hopefully, we can do something special here."

Palmer's arrival marks something of a milestone as it takes the Londoners' accumulative spending on transfers under Todd Boehly and their new owners past the £1 billion mark.