Atletico Madrid are reportedly on course to complete the signing of Chelsea striker Alvaro Morata by the end of Tuesday.

The Spanish international was left out of the Blues' matchday squad for the third game running on Saturday as they fell to a 1-0 loss at top-four rivals Arsenal.

Morata has been back in his home country this week discussing terms with Atletico after being given the all-clear by Chelsea to find a new club.

The two sides have been discussing an initial loan deal for the out-of-favour frontman, who has failed to settle in his 18 months at Stamford Bridge, scoring just 16 Premier League goals in 47 appearances.

Marca reports that an agreement is in place, but Chelsea have held off on signing off on the deal as they are first awaiting Gonzalo Higuain's arrival from Juventus.

With Higuain due to sign on the dotted line in the next 48 hours, it is claimed that Blues director Marina Granovskaia will green light Morata's transfer early next week.

Atletico supposedly have the option to sign Morata on a permanent basis for around £53m at the end of the season, but they will first need to offload Gelson Martins and Nikola Kalinic to balance their books.