Chelsea reach agreement with Juventus for Gonzalo Higuain loan deal with option to extend by another year Gonzalo Higuain was substitute for AC Milan's Super Cup clash with Juventus He was named on substitutes bench because he had come down with 'virus' Sportsmail understand Juventus and Chelsea have agreed general terms of deal Blues are continuing talks with Atletico Madrid over deal to sell Alvaro Morata By Kieran Gill and Simon Jones for MailOnline Published: 22:30 GMT, 16 January 2019 | Updated: 22:59 GMT, 16 January 2019 1 Viewcomments Chelsea have reached an outline agreement with Juventus for the loan of Gonzalo Higuain until the end of the season with an option to extend for a further year. The extension will be triggered by Higuain reaching certain amount of appearances and goals. The 31-year-old will cut short his loan with AC Milan once they have secured a replacement. Gonzalo Higuain is edging closer to a move to Chelsea after an an outline agreement was made Chelsea have offered Michy Batshuayi in negotiations with Milan though his preference is to go to Monaco. Genoa striker Krzysztof Piatek remains Milan's priority. Higuain was named on the substitutes' bench for Milan's Italian Super Cup final against his parent club on Wednesday night. Milan, who were supposed to keep Higuain for the season, claimed he was not in the starting line-up because he came down with a 'virus'. The forward is keen on a reunion with Maurizio Sarri as the pair were together at Napoli. Higuain wants to reunite with former manager Maurizio Sarri at Stamford Bridge In 2015-16, which was Sarri's first season at the Italian club, Higuain scored 36 goals in 35 games in Serie A. Meanwhile, Chelsea would prefer to sell Batshuayi for £40million rather than agree another loan but could be open to an initial temporary deal with an obligation to buy the Belgian. The Blues remain in talks with Atletico Madrid for the sale of Alvaro Morata. The Spaniard is keen to return to Madrid and Atletico are hopeful of meeting Chelsea's valuation. Chelsea are increasingly irritated by Bayern Munich's public declaration of interest in Callum Hudson-Odoi and have so far resisted accepting the £35m on offer for the 18-year-old forward. Callum Hudson-Odoi is a target for Bayern Munich but Chelsea are holding firm Share or comment on this article: All rights reserved for this news site dailymail and under his responsibility