How Chelsea have reacted as Wolves agree Pedro Lima deal

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• EXCLUSIVE from Graeme Bailey

Chelsea have suffered a blow in their quest to sign Pedro Lima, with Wolverhampton Wanderers now striking a deal with his club.

Despite having a number of young players on their books, Chelsea are on the hunt for more promising youngsters in the summer transfer window.

The Blues, who failed to finish in the top four of the Premier League table last season, had set their eyes on Lima.

Lima is only 17 and plays as a right-back. The youngster is part of the Brazil Under-17 side and is rated very highly in Brazilian domestic football.

HITC reported last week that Chelsea had agreed personal terms with the Sport Club do Recife right-back.

Pedro Lima to join Wolverhampton Wanderers

Manchester United, Tottenham Hotspur and Real Madrid have also been showing interest in the teenager, but Chelsea felt that they had sealed the deal.

However, Sport Recife have announced that it is with Wolves that they have struck a deal with for Lima.

The Brazilian club have noted that the transfer is “subject to customary conditions, including the athlete’s approval of medical examinations conducted by the English club”.

Chelsea shocked by Pedro Lima twist

This has come as a huge blow for Chelsea. Sources have told HITC that the London club have been left shocked by Lima’s decision to move to Wolves despite agreeing personal terms with them.

Chelsea believed the deal was done. The Blues were organising for Lima to move to France with sister club Strasbourg on loan next season.

Wolves sources have told HITC that Lima has agreed a “long-term’ deal with the club. The teenage right-back will officially move to Molineux on his 18th birthday on July 1.