Manchester United have reached an agreement on a fee of €40 million with Chelsea for the transfer of Argentine forward Alejandro Garnacho.

The 21-year-old Manchester United academy graduate bids farewell to Old Trafford after a turbulent spell under coach Ruben Amorim, who told him at the end of last season to find a new club.

The forward is set to sign a seven-year contract at Stamford Bridge.

The deal, which includes a 10% sell-on clause, ranks as United’s fourth-largest sale after Cristiano Ronaldo, Romelu Lukaku, and Ángel Di María.

The finalised agreement comes after AC Milan secured forward Christopher Nkunku, while Carney Chukwuemeka completed a switch to Bundesliga side Borussia Dortmund.

Striker Nicolas Jackson is also in active talks over an initial loan move to Bayern Munich, which could include an obligation to buy the 24-year-old. Chelsea are also considering other departures, including Raheem Sterling and Ben Chilwell.

Chelsea have become major spenders since the takeover by Todd Boehly and Clearlake Capital, investing over £500 million in player transfers, including add-ons.

With the club fined £26.7m for breaching UEFA’s financial rules and recording a squad cost ratio—spending over 80% of income on wages—they are now required to achieve a positive transfer balance this window to register new signings for the Champions League.

Garnacho leaves Old Trafford as the club faces turbulence after a humiliating performance, most notably being knocked out on penalties by League Two side Grimsby Town, despite spending over £200m on a new attacking frontline of Benjamin Sesko, Matheus Cunha, and Bryan Mbeumo.