AC Milan are to sign permanently Chelsea striker Fernando Torres next week. He moved to Milan on a two-year loan in August and, although he had been strongly linked with a return to his first club Atletico Madrid in recent days, on Saturday Chelsea announced a deal had been reached for him to join Milan permanently from January 5.

The deal does not rule out a return to Atletico in the upcoming transfer window.

The Spanish champions have indicated they do not have the funds for a permanent deal themselves, but may yet sign him on another loan deal from Milan once he has left Chelsea.