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Chelsea failed with a £42 million ($87.5 million) bid for Gittens, who has been capped up to under-21 level by England, on the eve of FIFA's new-look tournament.

Dortmund's chief executive, Lars Ricken, revealed Gittens was keen to join the Blues but said their offer had failed to meet his valuation of the 20-year-old.

However, on Friday (AEST), Dortmund revealed in a statement that Gittens was set to finalise a transfer, reportedly for a fee of £55 million ($114.6 million).

"Jamie Gittens' career exemplifies the development of top talents at BVB," Ricken said. "We discovered him very early, signed him almost at no cost, continuously developed him in our youth academy, and provided him with playing time at the highest professional level.

"Jamie has repaid that trust with dedication, performance, and goals. His transfer back to his home country would be highly valuable for us. We wish Jamie all the best for his sporting future."

Gittens made 32 appearances in the Bundesliga in 2024-2025, scoring eight goals – double the combined tally he managed across his first three campaigns in Germany.

The winger, who rose through the ranks at Manchester City before joining Dortmund in 2020, attempted 160 dribbles and completed 77, both team-high figures for Dortmund in the 2024-2025 Bundesliga, while he also created 21 chances as it salvaged a fourth-place finish after a poor start.

Sporting director Sebastian Kehl added: "The negotiations with Chelsea were challenging, but in the end, we are glad that we can gain planning security.

"Jamie is an excellent player who has brought us great joy. It was his wish to take the next step in his career at Chelsea, and we wish him all the very best and much success."

Both clubs are through to the quarter-finals of the FIFA Club World Cup but are on opposite sides of the draw.

Chelsea will face Palmeiras for a semi-final spot in Philadelphia on Saturday (AEST), while Dortmund takes on Real Madrid at MetLife Stadium on Sunday (AEST).

Gittens has only played 14 minutes during Dortmund's campaign in the United States, coming off the bench against Fluminense in the group stage.

He will become Chelsea's seventh acquisition in a busy transfer window. Forwards Joao Pedro and Liam Delap have joined from Brighton and Hove Albion and Ipswich Town respectively, while pre-agreed moves for Estevao, Dario Essugo, Mamadou Sarr and Kendry Paez have also gone through.