Chelsea FC has reached a £54 million agreement with Wolverhampton Wanderers (Wolves) to sign Pedro Neto, according to The Athletic.

The deal, struck earlier on Friday, includes an initial payment of £51.4 million and an additional £2.6 million (€3 million) in add-ons.

"We are thrilled to bring Pedro Neto to Chelsea," said a Chelsea FC spokesperson. "He is an exceptional talent, and we believe he will be a valuable addition to our squad."

Neto is expected to undergo medicals with Chelsea soon, paving the way for his transfer to the Blues.

"Pedro has been a key player for Wolves, and we are sad to see him go," said a Wolves representative. "However, we recognize the opportunity for him to grow and develop at Chelsea, and we wish him all the best."

The transfer marks a significant move for Chelsea, strengthening their squad ahead of the new season.