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Chelsea have announced the signing of left-back Yisa Alao from Sheffield Wednesday as he becomes the latest addition to list of youngsters at Stamford Bridge.

The 17-year-old is understood to have joined Chelsea for an initial fee of just over £500,000, but add-ons are expected to take the fee to around double that if the terms are met.

According to multiple report, Chelsea saw off stiff competition for Alao’s signature, with Manchester United having also held talks to try to sign him and Liverpool were also interested.

Yisa Alao playing for Sheffield Wednesday during a Sky Bet Championship match. (Photo by Harriet Massey/Getty Images)

A previous bid of £450,000 by United is believed to have been rejected by Wednesday before Christmas, before Chelsea won the race to sign the Doncaster-born defender.

Alao has been a breakthrough star for Wednesday this season and played 60 minutes in their FA Cup defeat to Brentford earlier this month.

Overall, he played five times for their first team this season and attracted attention from Premier League scouts with his assured displays.

A statement from Chelsea announcing his arrival on Monday afternoon read: “Chelsea is pleased to announce the signing of Yisa Alao, with the left-back agreeing a contract with the Blues until 2028.

“The 17-year-old came through Sheffield Wednesday’s academy and made his senior debut for the Owls in August. Alao has since played four more games, starting Wednesday’s recent FA Cup tie against Brentford and Championship match against Portsmouth. Welcome to Chelsea, Yisa!”

Alao is a product of the Wednesday academy and made his senior debut against Bolton in the Carabao Cup in August at the age of 16.