Crystal Palace are finalising the loan signing of Chelsea striker Michy Batshuayi.

The Daily Mail reports Batshuayi has returned to Palace on loan after signing a one-year contract extension with Chelsea.

The 26-year-old's existing Chelsea deal was set to expire next summer but the additional 12 months will now ensure he does not become a free agent once his loan expires.

Palace have an option to buy the player at the end of the loan deal but they are not obliged to.

The 26-year-old joined Chelsea for £33million from Marseille in 2016 but has struggled for regular game time and been pushed further down the pecking order this summer following the Blues' spending spree.

The £53m signing of Timo Werner, adding to Tammy Abraham and Olivier Giroud already in the squad, means Batshuayi would have been the fourth-choice striker in Frank Lampard's options.