AC Milan have submitted a new bid worth over €20 million ($21.8m) for Chelsea forward Christian Pulisic, sources told ESPN.

ESPN reported last week that Pulisic had agreed personal terms in principle with Milan, who can offer the United States star the chance to play Champions League football next season.

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Sources told ESPN that Milan are confident of striking an agreement with Chelsea over the transfer fee, with the Italian club believing the savings Chelsea would make on Pulisic's wages -- about €15m per year -- are enough to get a deal with their latest offer over the line.

Ligue 1 side Lyon have also shown interest in Pulisic, sources told ESPN, but the forward is expected to reject the chance to move there, believing it to be the wrong move for his career.

Pulisic joined Chelsea in a €64m move from Borussia Dortmund in 2018 and has gone on to make 145 appearances across four seasons at the club.