Transfer news: Chelsea agree fee with Saint Etienne for Kurt Zouma - reports

Blues could announce third signing of the window

Chelsea will win the race to sign highly-rated Saint-Etienne defender Kurt Zouma, according to reports (Getty Images)

Chelsea have agreed a £12.4m fee for Saint Etienne defender Kurt Zouma, according to reports.

It is understood that Jose Mourinho has already spoken to the France U21 international about a move to Stamford Bridge.

The Evening Standard report that the 19-year-old is expected to stay in France for the rest of the season before joining on a five-year-deal in the summer.

His impending arrival will increase speculation over the long-term future of Brazil international David Luiz, as well as captain John Terry.

Luiz is no longer first choice in manager Jose Mourinho’s first team and was left on the bench for the 0-0 draw against West Ham last night.

Mourinho is expected to sell more players in the close season to raise transfer funds for other targets and Luiz, who cost £25m in 2011, continues to be linked with Bayern Munich and Barcelona.

He is currently worth in excess of £30m, although his value could increase even further should he star for Brazil in the World Cup this summer.

Meanwhile, Terry has yet to be offered an extension on his contract, which expires at the end of this season.

Chelsea will only offer a 12-month deal as part of their strict policy regarding players over 30, but the former England international wants more than that.

Room will have to be made in the squad for Zouma, who is rated as one of the best young defenders in France.

Chelsea also have Gary Cahill, Branislav Ivanovic and youngster Tomas Kalas that can all play at centre half.

The signing of Zouma will take Chelsea's January spending above £48m having also bought Nemanja Matic and Mohamed Zalah during this window. But they have still made a profit during the month as Juan Mata and Kevin de Bruyne left for a combined £53m.

Who else could Chelsea sign?