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The London clubs are interested in the midfielder and are expected to table their bids.
Chelsea and Crystal Palace are set for a tight race to sign Brazilian attacking midfielder Matheus Franca.
Franca is a €25 million-rated sensation and now has a choice to join either of the London clubs should Flamengo's asking price be met. Flamengo will be keen to get that amount of money and may achieve their target given the interest around the attacking midfielder.
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Franca's representatives are understood to have been in London, and both Chelsea and Crystal Palace officials had a meeting with them. His exit from Flamengo is understood to be imminent, but he must decide which club is his next destination.
The Blues are understood to have had an interest in the teenager and were expected to make an official bid. If they manage to secure the latest Brazilian sensation, he could be sent on loan to Strasbourg, according to reports.
His move from Chelsea to Starsbourg will be easy because Chelsea owners control the French club. Should that happen, Franca will be following in the footsteps of Angelo Gabriel, who was recently signed from Santos.
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The Brazilians can trigger the two-year option that was in Mandela's initial contract.
However, it is understood that Palace have made a more interesting offer for Franca, and this could win them the race ahead of Chelsea.
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