Chelsea has completed the signing of England Under-21 forward Cole Palmer from Manchester City in a deal valued at an initial £40 million ($50 million).

Palmer has committed to a seven-year contract with Chelsea, which includes a club option for a further 12-month extension and possible add-on clauses of £2.5 million to be paid to Manchester City.

While City was eager to retain Palmer, Chelsea’s substantial offer convinced them to part ways with the talented young player who sought more regular first-team opportunities.

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At just 21 years old, Palmer could make his debut for Chelsea in their upcoming Premier League match against Nottingham Forest at Stamford Bridge.

Excited about the new chapter in his career, Palmer shared, “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.”

This signing takes Chelsea’s spending since the acquisition by Todd Boehly’s Clearlake Capital consortium to over £1 billion in the past 16 months.

Palmer becomes Chelsea’s 12th signing since the end of the previous season, aligning with manager Mauricio Pochettino’s desire to strengthen the team’s forward line.

Chelsea’s co-sporting directors, Laurence Stewart and Paul Winstanley, praised Palmer’s talent, versatility, and readiness for this new challenge.

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Having emerged from Manchester City’s academy, Palmer contributed significantly to the club’s success, including winning the Premier League, Champions League, and FA Cup.

He also played a crucial role in England’s victory in the Under-21 European Championship earlier this year.

Palmer’s arrival at Chelsea adds depth and quality to the club’s attacking options, reinforcing their ambitions for continued success.