Chelsea have completed the signing of Moises Caicedo from Brighton for an initial £100million (€116m), possibly rising to £115m (€134m) after add-ons.
If the add-ons are triggered it will be the third biggest deal in history, after the respective transfers of Kylian Mbappe and Neymar to Paris St-Germain.
A deal for the midfielder - who was also coveted by Liverpool - was finally agreed late on Sunday night after a lengthy saga that saw Brighton knock back three bids for the 21-year-old.
He underwent a medical and agreed personal terms on Monday and has signed an eight-year contract with the club.
Caicedo said: "I am so happy to join Chelsea! I am so excited to be here at this big club and I didn't have to think twice when Chelsea called me, I just knew I wanted to sign for the club.
"It’s a dream come true to be here and I can’t wait to get started with the team."
It is understood Chelsea have won the race to sign Romeo Lavia from Southampton after the midfielder picked Stamford Bridge over a move to Liverpool
Though a fee is yet to be agreed, the 19-year-old has indicated his desire to join Mauricio Pochettino’s side and negotiations will now take place over personal terms, with the deal likely to be worth in excess of £50million (€58m).
It is the second time in less than 24 hours that the club have beaten Liverpool to a key transfer target following Caicedo’s capture.
Belgium international Lavia has played just 29 Premier League games since joining Southampton from Manchester City last summer but was a standout performer last season despite Saints’ relegation to the Championship.
Liverpool had reportedly agreed a deal worth £60m to sign Lavia as Klopp looks to reinforce his midfield following a clutch of departures, but look set to miss out again in an echo of their failure to lure Caicedo, for whom a £111m fee had been agreed before Chelsea stepped in.
Paris St Germain have agreed a deal with Saudi Pro League side Al Hilal for the sale of Brazilian forward Neymar (above) with the deal subject to the player completing his medical, the BBC reported on Monday.
The BBC reported the transfer fee to be about €90 million plus add-ons.
Neymar, who joined PSG in 2017 from Spanish club Barcelona for a world record transfer fee of €222 million, missed PSG's Ligue 1 opener against Lorient on Saturday due to a viral infection.
Neymar was contracted to stay in the French capital until 2025 and has 118 goals in 173 appearances, capturing numerous trophies including five Ligue 1 titles.
Al Hilal had tried to sign the Brazilian's PSG team mate Kylian Mbappe. They were also reportedly interested in Argentine Lionel Messi who opted to join Major League Soccer's Inter Miami.
West Ham have announced the signing of midfielder James Ward-Prowse from Southampton.
The 28-year-old made 410 appearances for Saints and was captain as they were relegated from the Premier League last season.
He has made a swift return to the top flight after joining the Hammers for an undisclosed fee - reported to be in the region of £30million - signing a four-year contract at the London Stadium.
Ward-Prowse told the club's official website: "I'm buzzing to be here at West Ham United. It's great to be here and I'm looking forward to getting going.
"From the outside looking in, this is a club that has been on the rise for a number of years now and coming off the success in the UEFA Europa Conference League last year, you can feel there is real momentum around this club. It's great to be a part of it and I can't wait to play my role in the games to come.
"When I think about my game, it is based on hard work, graft, and giving 100%. West Ham United has always been a club that epitomises that. You can feel that from the fans and you can see it in the players who are here and the lads that have come through the academy too.
"I feel as though I will fit straight in and I can promise I will give my all for this football club in my time here."
Ward-Prowse spent two decades on the south coast having joined Southampton's academy at the age of eight.
During his time at St Mary's, he earned 11 senior England caps and scored two goals for his country.
Ward-Prowse scored 17 Premier League free-kicks for Southampton and needs just one more to draw level with the record, held by David Beckham.
He becomes West Ham's second major signing of the summer following the recent acquisition of fellow midfielder Edson Alvarez from Ajax.
Manchester United defender Harry Maguire could be the next player in at West Ham as manager David Moyes looks to improve a team that finished 14th last season but went on to lift the Europa Conference League.
They opened their season with a 1-1 draw at Bournemouth on Saturday and lost former captain Declan Rice to Arsenal for £105million in July.
Chelsea goalkeeper Kepa Arrizabalaga has completed a season-long loan move to Real Madrid.
The 28-year-old Spain international, who joined the Blues in a £71.6million (€83) switch from Athletic Bilbao in August 2018, is contracted at the Bernabeu until June next year.
Real needed a new keeper after Thibaut Courtois was ruled out for the majority of the season with an ACL injury.
Kepa's return to Spain follows the arrival of 25-year-old compatriot Robert Sanchez at Stamford Bridge.
Sanchez made a £25million switch from Brighton earlier this month and started Sunday's 1-1 home draw with Liverpool as youngster Lucas Bergstrom provided the back-up on the bench.
Kepa has 163 Chelsea appearances under his belt and was handed the captaincy last season
Everton have signed Leeds United winger Jack Harrison on a season-long loan.
Harrison, who has spent the last five campaigns at Leeds after initially joining on loan, is Everton's fourth summer signing.
Everton said on their official website: "The 26-year-old passed his medical with the club yesterday before completing the necessary paperwork this morning.
"He will now continue his rehabilitation from a minor hip injury before being available for Sean Dyche's squad."
The Toffees have signed forward Arnaut Danjuma from Villarreal, defender Ashley Young from Aston Villa and striker Youssef Chermiti from Sporting Lisbon since narrowly avoiding relegation last season.
With additional reporting: Reuters
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