Chelsea sign Cole Palmer as Manchester City wrap up Matheus Nunes deal

Chelsea have bolstered their attacking options by completing the initial £40m signing of Cole Palmer from Manchester City, who in turn have added Matheus Nunes from Wolves for £53m to their squad, the midfielder becoming the champions’ fourth major summer signing.

Palmer became the 13th player to move to Stamford Bridge this transfer window as the winger signed a seven-year deal with the option of an extra year. The deal is a boost for Mauricio Pochettino, who has been pushing Chelsea to buy an attacking player since losing Christopher Nkunku to a long-term knee injury last month. Chelsea are also without Mykhailo Mudryk and Carney Chukwuemeka for Nottingham Forest’s visit on Saturday.

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Pochettino’s preference was to bring in a forward capable of playing in a variety of roles. Palmer fits the bill: a left-footed talent capable of playing on the right wing and through the middle. He needs regular football and his sale will strengthen City’s financial fair play position. Money received for academy products counts as pure profit in FFP terms.

Chelsea have moved quickly to sign Palmer and have agreed to pay £40m plus £2.5m in add-ons. The 21-year-old had hoped to earn more opportunities at City following Riyad Mahrez’s move to the Saudi Pro League. Palmer made an encouraging start to the season, scoring against Arsenal in the Community Shield against Arsenal and Sevilla in the Super Cup, and he played a pivotal role in England Under-21s’ triumph at their European championship this summer.

“I’m excited to get started and it feels great to sign,” said Palmer. “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.”

It remains to be seen if Chelsea, who have had another busy summer, attempt to make any more signings before the transfer window shuts. They are monitoring the Brentford striker Ivan Toney, who is suspended until January after breaching the Football Association’s betting regulations. There is no need for Chelsea to rush a deal for Toney but they are firm admirers of the England international.

Chelsea are negotiating an exit package with Callum Hudson-Odoi, who is on the verge of completing an £8m move to Nottingham Forest. The winger is set to undergo a medical and will be on reduced wages at Forest.

Nunes, meanwhile, has signed a five-year contract at City and joins the defender Josko Gvardiol,the midfielder Mateo Kovacic and Jérémy Doku, a wide player, as summer acquisitions.

Nunes said: “I’m so happy to be joining Manchester City, the champions of Europe and a club I’ve admired for a long time. The opportunity to work under Pep Guardiola, one of the greatest managers ever, and alongside some of the best players in the world was something I simply couldn’t turn down.” The 25-year-old’s transfer follows Nunes’s refusing to train at Wolves to force the move through.