Andrey Santos is heading back to Brazil after his UK work permit was denied (AFP via Getty)

Chelsea have agreed a loan deal with Palmeiras for Andrey Santos, according to reports.

The 18-year-old joined Chelsea in an an £18 million deal from Vasco da Gama in January.

However, the midfielder has been denied a UK work permit, meaning that he is unable to join Graham Potter’s side for the remainder of the season.

According to UOL, Chelsea have reached an agreement with Palmeiras to loan Santos until December, however, the midfielder still needs to agree to make the move to the Brazilian club.

The report claims that Santos will make the final decision over his next move as Atletico Mineiro and Internacional are also potential destinations.

Andrey Santos was one of Brazil’s standout performers at the South American Under-20 Championship (EPA)

Meanwhile, the Evening Standard reports that Chelsea have included a €1.5m (£1.3m) break clause in their loan agreement with Palmeiras which would enable Santos to return to Stamford Bridge in June.

Chelsea had initially planned to immediately integrate Santos into their first team once Brazil’s campaign at the South American Under-20 Championship had ended.

Santos was one of Brazil’s standout performers at the tournament as he scored six goals and played a key role in helping his nation finish top of the final stage.

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Speaking after completing his move to Chelsea last month, Santos said: ‘It’s a very big opportunity for me.

‘This is a big club playing in big competitions like the Premier League so I am very excited. The players here are so good and I am very happy to be here.’

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The 18-year-old is not yet able to make his Chelsea debut.