Chelsea agree deal for Palace star after beating eight clubs in transfer race
It's thought that a number of teams were keen on the 18-year-old, including PSG, Juventus, Atletico Madrid, Celtic, Rangers and Bayern Munich.
The England U19 international winger was originally set for a move to the Bundesliga, Fabrizio Romano posted on his X account.
But the football transfer expert now claims Chelsea have hijacked the deal for the teenager, who is set for a medical at Stamford Bridge on Friday.
Derry, who can play down the left and the right, ran down his contract at Selhurst Park with Chelsea now set to pay Palace a compensation fee.
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Derry has shined in the U18 Premier League, conjuring up 19 goals and four assists across 24 games for Palace U18s.
He has also featured for Palace U21s and caught the attention of several top clubs when he scored against RB Leipzig U21s.
Known for his direct approach and quick decision-making, Derry joins the list of exciting youngsters hoping to break into Chelsea's first team.
Derry has previously played with Arsenal stars Myles Lewis-Skelly and Ethan Nwaneri for England U19s.
He is the son of former Palace midfielder Shaun Derry, who played a total of 222 games for the south London club.
Meanwhile, Chelsea fans have tipped Thiago Silva's son to become a 'club legend' after he was signed as a scholar ahead of the 2025-26 season.
The Blues recently unveiled their latest group of first-year scholars, with Isago Silva one of 16 young players announced before the new campaign. More Trending
The 16-year-old mainly features as a left-back but can also be deployed as a central defender.
His father played 155 games for Chelsea from 2020 to 2024, with the club winning the Champions League during his spell at Stamford Bridge.
Chelsea's new scholarship class also includes 16-year-old wonderkid Reggie Walsh.
The teen is the only player in the 2025-26 intake to have appeared for the first team, having featured in the Conference League last season.
MORE: Bayern Munich make approach sign Man Utd star as Luis Diaz alternative
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