The 21-year-old only joined Chelsea from Sporting last summer, but injuries meant he was unable to get settled at the Stamford Bridge club.
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Essugo has been available for loan all summer, and was reportedly close to joining newly promoted Hull, but they opted against the deal after moving for Everton’s Tim Iroegbunam.
According to Fabrizio Romano, the midfielder will now be shipped off on loan to fellow BlueCo club Strasbourg for the remainder of the season.
Chelsea will have just five midfielder options should the move go through, with Enzo Fernandez set to join Man City for a joint British record £125 million.
Moises Caicedo, versatile option and captain Reece James, Romeo Lavia, Valentin Barco and Jordan Henderson are currently on the books.