By Simon Jones
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Chelsea are close to finalising a 5million deal for long-term target Wallace from Brazilian side Fluminense.
The European champions have held 40 per cent of the young right-back's economic rights since 2010 following their free transfer of Deco to the Brazilian club.
They have been prompted to tie up a deal now following increased interest from Juventus and Napoli who offered 4.5m for the 18-year-old while Manchester City had also monitored the player.
Bound for the Bridge: Fluminense full-back Wallace (right) is heading to Chelsea
Club representatives held further talks in Rio on Tuesday and a deal is expected to be confirmed on Monday after Fluminense hope to have won the Brasileirao Championship.
The Under 20 international, full name Wallace Oliveira Santos, was part of the same Brazil Under 17 side as Chelsea midfielder Lucas Piazon at the 2011 World Cup in Mexico. He could join Piazon at Stamford Bridge in January but a loan back to Fluminense has also been discussed.
Wallace's agent Frederico Morais said: 'Wallace and I have talked about Europe, but agreed that he will be best served by staying in Brazil. He now needs to develop more.
'He actually already has a lot of experience for a player of only 18 years of age.' Fluminense coach Abel Braga rates Wallace highly.
He said: 'This kid has an extraordinary future ahead of him. In the attacking third of the field, his level of crossing is superior.'
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