Chelsea have signed England Under-21 forward Cole Palmer from Manchester City for an initial £40m.
The deal includes a further £2.5m in add-ons and the 21-year-old has signed a seven-year contract with the option of a further year.
Palmer was part of the England side which won the European Under-21 Championship earlier this summer, and is a product of the City academy.
“I’m excited to get started and it feels great to sign,” he said.
“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.”
Palmer scored in both City’s Uefa Super Cup win over Sevilla and the Community Shield defeat by Arsenal.
City manager Pep Guardiola had previously said that Palmer would not be allowed to leave on loan. West Ham had been interested in signing him earlier this summer but that was thought to be a loan approach.
More to follow.