Chelsea close to contract agreement with Garnacho replacement

7 Jul 2026 09:55 BST | 4 min read News © IMAGO Cameron Smith | Digital Content Producer Accredited sports journalist covering football since 2020 Make us your Google favourite Chelsea wonderkid Jesse Derry is reportedly “close” to signing a new contract at the club following an excellent debut season in west London.Article continues under the videoThe England U19 international moved to Stamford Bridge from Crystal Palace’s academy last summer and he made three first-team appearances for the Blues during the 2025-26 campaign, including a first ever Premier League start versus Nottingham Forest in April. Derry scored six goals and provided three assists in 17 Premier League 2 games for Chelsea’s U21 side last term, while he also found the back of the net on five occasions in just eight matches in the UEFA Youth League.Several top European clubs have shown interest in the 19-year-old so far this summer, including Bundesliga giants Bayern Munich, but he is now on the verge of signing a contract extension at Chelsea, as per BBC Sport.Derry’s current contract isn’t due to expire until 2029, however a new long-term deal is expected to be announced shortly, with the teenager set to be rewarded with improved salary terms. © IMAGO - Jesse Derry, ChelseaAnalysis: Jesse Derry to replace Alejandro Garnacho?Derry has been linked with a loan move away from Chelsea, in order to gain valuable first-team experience, but it’s likely that a decision will be postponed until after he has been given the chance to impress new boss Xabi Alonso in pre-season.The England youngster caught the eye last campaign and given Chelsea’s struggles in attack, it’s reasonable to suggest that he could play a role for the senior team next season if Alonso takes a liking to him.If Derry is promoted into a more prominent first-team position, it could come at the expense of Alejandro Garnacho, who endured a difficult debut season at the club following his arrival from Manchester United.BBC Sport and The Athletic have confirmed that Chelsea are open to selling Garnacho this summer, and it’s reported that a number of clubs across Europe are keeping a close eye on his situation ahead of a possible summer deal.The Argentina winger, who hasn’t played for his country since 2024, only scored one Premier League goal during his first season at Chelsea - against Sunderland in October - and Serie A side AS Roma are among the teams interested in a potential move for the 22-year-old before the summer window closes.Related stories:Build The FIFA World Cup 2026™: LEGO© releases stunning football-inspired collectionTransfer Rumours: 'Serious' Crysencio Summerville move as Man Utd make shock decisionPremier League summer transfers 2026: All the Done DealsThe FootballTransfers appCheck out FootballTransfers' new app for all of football's big storylines, transfer rumours and exclusive news in one convenient place directly on your mobile device.The FootballTransfers app is available on Google Play and in the Apple App Store. Download here:•Google Play•App Store