Report: Chelsea set to sign Kovacic permanently from Real Madrid for £40M

Chelsea may have figured out a way to complete at least one signing before their two-window transfer ban comes into effect.

The Blues are on the verge of a £40-million deal to sign Mateo Kovacic, who spent last season on loan with the club, from Real Madrid on a permanent basis, according to Simon Stone of BBC Sport.

Despite the impending ban, Chelsea can sign the midfielder if they complete the deal before his loan expires on June 30. Since the club has already registered the 25-year-old, it wouldn't be required to do so again, thus circumventing the ban.

The transfer ban was issued by FIFA after Chelsea was accused of violating regulations pertaining to the recruitment of foreign players under the age of 18. The club is awaiting word on their appeal to the Court of Arbitration for Sport.

After a season in which he struggled for playing time at Real Madrid, Kovacic made a smooth transition to life in the Premier League, appearing in 32 league matches and also helping Chelsea win the Europa League title last month.

Along with the possible arrival of Kovacic, Chrisitan Pulisic, who agreed to a long-term contract in January following his £58-million transfer from Borussia Dortmund, will link up with Chelsea once he completes his international duty with the United States at the Gold Cup.