Chelsea has opened talks with Benfica on a transfer for Enzo Fernandez. 

Chelsea would like to upgrade their midfield in January and have identified Fernandez as their top target.

Fernandez’s contract expires in 2027 and has a release clause of €120 million, with Benfica thought to only be willing to sell for the full amount. 

Real Madrid are prepared to spend over $100 million to sign Jude Bellingham from Borussia Dortmund.

Liverpool has been widely considered as the other club most likely to sign Bellingham. Bellingham is also receiving interest from Manchester City, Manchester United and Chelsea.

Madrid would view a $100m fee as a sensible figure and hope that the good relationship between club president Florentino Perez and Dortmund CEO Hans-Joachim Watzke could help clinch the deal.

Real Madrid views Bellingham as an ideal addition in midfield to play with Aurelien Tchouameni, Eduardo Camavinga and Federico Valverde.

Chelsea have agreed to sign David Datro Fofana from Molde FK for $13.15 million.

The striker has enjoyed a fruitful recent season with Molde in the Eliteserien, the top flight of Norwegian football, contributing 15 goals and five assists in 24 matches.

Graham Potter has been looking to bolster his attacking ranks with a shortage of forward options available to him.

Arsenal have submitted an opening bid of around €65 million for Shakhtar Donetsk winger Mykhailo Mudryk.

Mudryk is Arsenal's top target of the January window.

Shakhtar, however, is valuing Mudryk at €100 million.

Arsenal are keen to strengthen their attacking options after losing striker Gabriel Jesus for up to three months following knee surgery on an injury sustained while playing for Brazil at the World Cup in Qatar.

Liverpool have agreed to sign Cody Gakpo from PSV Eindhoven for $45 million, beating out Manchester United in the process. 

The Dutch club said in a statement: "PSV and Liverpool FC have reached an agreement on the proposed transfer of Cody Gakpo. The 23-year-old attacker will leave for England imminently where he will be subjected to the necessary formalities ahead of the completion of the transfer."

Gakpo, 23, emerged as a star of the World Cup in Qatar by scoring three goals for the Netherlands before their quarterfinal elimination at the hands of eventual champions Argentina.

Wolves have signed Matheus Cunha from Atletico Madrid on loan with an obligation to buy for €50 million. 

The former Sion, RB Leipzig and Hertha Berlin player moved to Atlético in the summer of 2021 and scored seven goals last season but has struggled for playing time this term.

Real Madrid have agreed to sign Endrick from Palmeiras in 2024 on a $76.5 million transfer.

"Real Madrid, Palmeiras, Endrick and his family have reached an agreement that allows the player to join Real Madrid when he reaches legal age in July 2024," Madrid said in a statement on their website.

"Until then, Endrick will continue training with Palmeiras. The player will travel to Madrid in the upcoming days to visit our club's facilities."

Barcelona, Paris Saint-Germain and Chelsea also pursued Endrick.

Manchester United will pursue Goncalo Ramos during the January transfer window.

United are looking to add a striker following the departure of Cristiano Ronaldo. 

Sources have also told ESPN that there are significant budget constraints as a result of the COVID-19 pandemic and a higher than expected outlay on transfers last summer.

Atletico Madrid has made Joao Felix, Matheus Cunha, Felipe and Mario Hermoso available on the January transfer market.

Atleti were eliminated in the group stage of the Champions League, which will hit their financial situation.

Joao Felix joined Atletico from Benfica for €127 million in July 2019 as one of the most highly rated teenagers in European football, intended as a replacement for the Barcelona-bound Antoine Griezmann.

Last week Atletico chief executive Miguel Angel Gil Marin admitted for the first time that a departure was likely.

"He's the biggest bet this club has taken in its history," he told TVE. "I personally think he's a top talent, a world class player. For reasons it isn't worth getting into -- the relationship between him and the boss [Simeone], the minutes played, his motivation right now -- it makes you think that the reasonable thing is that if there's an option that's good for the player, good for the club, we can look at it. I'd love him to stay personally, but I don't think that's the player's idea."

Paris Saint-Germain has interest in signing Jude Bellingham of Borussia Dortmund.

Last month, ESPN reported that Liverpool are the leading candidates to sign Bellingham despite interest from Chelsea, Manchester United, Manchester City and Real Madrid.

Dortmund's chief executive Hans-Joachim Watzke said the midfielder can leave in the summer transfer window.

"What a player. Honestly, England are lucky to have him ... and he's one of the best players in the tournament," PSG president Nasser Al-Khelaifi  told Sky News.

"Amazing and you see his first World Cup -- calm and relaxed and confident."

"Everyone wants him. I'm not going to hide it. But I respect he's in his club and, respect if we want to talk to him, we talk to the club first."