Joao Felix has completed a return to Chelsea rejoining the Blues on a permanent transfer in a deal that could rise in excess of £46m.

The 24-year-old spent six months on loan at Stamford Bridge in the 2022/23 season and scored four times in 20 appearances. He has signed a seven-year contract.

His return comes after a long-running transfer saga which saw Chelsea negotiate a deal to send midfielder Conor Gallagher in the opposite direction with a move to Atletico Madrid. The 24-year-old, who came through the youth ranks at Stamford Bridge, has signed a five-year contract with the Spanish side after the clubs agreed a reported £33.7m fee.

Gallagher’s sale was done, in part, as a necessity as Chelsea look to adhere to the Premier League’s Profit and Sustainability rules. As a homegrown player, the proceeds from his sale will be recorded as pure profit for the Blues.

The midfielder became a regular in the Chelsea side over the past two seasons after loan spells at Charlton, Swansea, West Brom and Crystal Palace. He made 95 appearances and scored 10 goals. He was a popular player with the fans who have been vocal in their displeasure at Chelsea’s ongoing decision to sell off their academy talents.

After his signing was announced on X/Twitter, Joao Felix said: “I’m really happy to be back at Chelsea and I can’t wait to get started. I can see some familiar faces from the last time I was here, which is always nice.

“I loved my time here before and I told my friends and family that I’d love to return to the Premier League one day. To do that with Chelsea is a great feeling and I’m excited to be back.”

Following his loan spell at Stamford Bridge, Atletico sent Felix on loan to Barcelona and the versatile forward is pleased to have a permanent home once more.

“It’s a chance for me to find a home,” he added. “After two loans, I needed to stay permanently in one place. There is no better place for me to be than Chelsea. I see a perfect place to shine.

“I’ve kind of changed since I was last here. I’m more prepared for the Premier League. I feel like my best years are ahead of me. The best years are still to come, and this year is going to be a good year, because now I am permanently at home, and I can enjoy home.”

Felix becomes the latest addition to Chelsea’s unbelievably huge squad which is a growing cause for concern.

Raheem Sterling was left out of the matchday squad versus Manchester City causing his agent to release a statement about his role at the club. Pundits Rio Ferdinand and Jamie Carragher have also questioned why Chelsea continue to spend money with Carragher going so far as telling them to “stop buying players”.

Speaking at his press conference on Wednesday manager Enzo Maresca explained why the club chose to sign Felix.

“First of all because he’s a good player, he’s a talent,” he said. “The club already knows him from two years ago. He can play different positions with us, inside, as a nine, outside.”