The Tangerines will get a Blues player having recently been promoted back to the second-tier of English football
Chelsea have agreed on a two-year contract extension for Dujon Sterling and will send him on loan to Blackpool in the Championship for the season.
The 21-year-old will also have an option for an extra year at Stamford Bridge after impressing in pre-season under Thomas Tuchel.
It marks a huge turnaround for the youngster who debuted for Chelsea under Antonio Conte in 2017, but had a 13 month lay-off due to an injury and then a seperate illness that was not related to Covid.
What do Chelsea think of Sterling?
Tuchel used Sterling in several matches in pre-season, playing him at centre-back rather than his preferred wing-back role.
The Chelsea manager is known to be impressed by Sterling and considered promoting him to the first-team having seen him train and play reserve matches behind the scenes.
Trevoh Chalobah has perhaps seized the opportunity that Sterling almost had with the Blues rejecting the possibility of sending him on loan. It ended his loan interest from clubs like Lille, Valencia and Club Brugge.
The willingness to promote Chalobah will also provide some hope to Sterling that Tuchel will take a chance on academy products who do everything right.
What else is going on at Chelsea?
Chelsea are weighing up loan options for more players with Malang Sarr, Ethan Ampadu and Ruben Loftus-Cheek all gaining offers.
Tiemoue Bakayoko is on the verge of signing a two-year contract extension and going on loan to AC Milan. The Blues are set to earn €1m per year and a further €1m if Champions League qualification is achieved. There is a mandatory €17 million (£15m/$20m) purchase option under certain conditions.
Meanwhile, the Blues are hoping to sell Danny Drinkwater, Ross Barkley and Lewis Baker.
Chelsea are attempting to sign Sevilla's Jules Kounde, but have hit a wall in negotiations with the Liga club now holding out for close to the £77m ($106m) release clause.