Andrey Santos was one of the players to arrive at Chelsea in the winter market after the Blues signed him from Vasco da Gama.
The 18-year-old wasn’t included in the west London club’s squad this season due to his failure to obtain a work permit to play in the UK.
This convinced Chelsea to send the midfielder out on loan and Palmeiras are pushed forward as the option for the past few days, at least in the Brazilian media.
It has been suggested Palmeiras were preferred ahead of Vasco da Gama because they are playing in the Copa Libertadores, and Andrey featuring in this competition would improve his chances of obtaining the work permit to represent the Blues.
UOL state Graham Potter’s side had initially agreed to let the Brazil U20 international go out on loan until the end of this year.
After Palmeiras made positive progress in the negotiations with the Premier League side, the latter have made ‘new contradictory demands’ to sanction Andrey’s loan move.
They want the player to participate in the U20 World Cup in May and also include a clause that will allow Chelsea to cut short his loan stay in the summer.
This hasn’t pleased Palmeiras, who have ‘made the right decision’ to withdraw from the operation for Andrey.
Potter’s side would have to find a new temporary destination for the South American until the end of this season.