Chelsea are discussing a fee with Olympique Lyonnais for in-demand defender Malo Gusto, journalist Simon Phillips has told GiveMeSport.

The Blues are known to be in the market for a new right-back who is able to provide cover and competition for Reece James this January and appear to have identified the 19-year-old as their top target.

Chelsea transfer news – Malo Gusto

Fabrizio Romano has reported that ‘Chelsea are in direct contact’ with Lyon over a move for Gusto but that his boyhood club want him to remain on loan until the end of the season.

Personal terms on a long-term deal have already been agreed between the teenager and the Blues, according to Romano, and the player is open to making the switch.

And the Daily Mail have now claimed that Chelsea are prepared to return to the negotiating table with an offer worth around £30 million for Gusto after seeing their opening bid rebuffed by Lyon.

Fellow Premier League outfit Manchester United are also said to be monitoring the full-back’s situation, although they may not be in a position to compete financially until the summer.

Gusto has racked up six assists in 54 appearances for Lyon across all competitions, establishing himself as one of the sport’s most promising young defenders.

What has Phillips said about Gusto?

Chelsea are currently rebuilding their first-team squad under manager Graham Potter and have already experienced a busy winter transfer window.

Read more: January Transfer Window 2023: When Does It Begin, Rumours and Everything You Need To Know

Yet Phillips has told GMS that a deal is close to being struck for Gusto with the fee the ‘only thing’ left to agree before it can be concluded.

He said: “The only thing now is to agree the fee. Chelsea put in the first offer, which is slightly below what Lyon are asking for. But I think the fee being discussed now is around £30 million to £35 million. So, they should get close to it.”

Do Chelsea need Gusto?

James and Cesar Azpilicueta are the only natural right-backs currently at Potter’s disposal in west London, and both players have their separate issues.

Injuries have plagued James’ promising career, and Transfermarkt states that at the age of just 23, the England international has already missed 67 games due to fitness complaints.

Meanwhile, Azpilicueta is in the twilight of his career and is no longer at the peak of his powers and especially struggles when asked to fill in at right wing-back.

Gusto’s potential arrival, therefore, would provide Potter with strength in depth in an area of the pitch that has growing importance in the modern era.