Chelsea are in “talks” about re-signing Tino Livramento from Southampton, according to the Daily Mail.

However, the English tabloid claim that even though it could cost around £38m to bring the defender back to Stamford Bridge, he may stay on loan on the south coast next season.

Newcastle have been in negotiations to snap up Livramento but it appears that the Blues are keen on stopping one of their rivals from securing the fullback’s signature.

The Saints have rejected a number of bids from the Magpies, with the Championship club looking to hold out for a high transfer fee due to the fact that Chelsea have a sizeable sell-on clause.

Of course, if he returns to London, that clause doesn’t need to be applied and Livramento’s club would be more open to accepting a slightly lower bid.

Why would Chelsea loan back Livramento?

Manager Mauricio Pochettino already has two right-backs in his squad, Reece James and Malo Gusto, so Livramento would not get a lot of game time if he were to return to the Blues this summer.

It should also be pointed out that the 20-year-old has only recently recovered from a serious knee injury so regaining his fitness and match sharpness at Southampton does make a lot of sense.

Transfer budget limitations do raise questions about the deal going ahead

Although Chelsea have raised the best part of £150m through player sales, you do have to wonder whether they can afford to spend nearly£40m on a player who wouldn’t be playing for them next campaign.

Pochettino will be keen to strengthen his options in midfield, while bringing in a new number nine is also a priority. Getting a deal in place for Livramento may not be top of the agenda, but it will be interesting to see if negotiations do progress beyond initial discussions.