The 18-year-old joined Chelsea in the January transfer window in an £18 million deal from Vasco da Gama but he has been denied a work permit and is currently unable to play for the club.
Chelsea had initially planned for Santos to be an immediate part of their first-team squad but are now looking to help secure a work permit for the midfielder.
Palmeiras provided a strong option for Chelsea as they are due to play in the Copa Libertadores this year, which would boost Santos’ chances of getting a work permit if he played in that competition.
However, Lucas Pedrosa now reports that Palmeiras have failed to reach an agreement with Chelsea as the Premier League are demanding that Santos is released for Brazil’s Under-20 World Cup campaign which begins in May.
Chelsea also wanted the loan deal to end at the start of July in order for him to be part of their pre-season preparations but Palmeiras wanted to keep the midfielder until the end of the year.
Speaking earlier this week, Vasco’s sporting director, Paulo Bracks, said: ‘I want Andrey here, even if it’s just for one game.’
However, Vasco must settle their payment due to Santos before the 18-year-old returns to them.
It’s understood that Vasco still need to pay around £1.6m directly to Santos and his representatives as part of his transfer to Chelsea.
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