Samu Omorodion's move to Chelsea from Atlético Madrid collapsed on Sunday, sources told ESPN, but the clubs are working on a deal for João Félix to return to the Premier League so that Conor Gallagher can join the LaLiga side.

Atlético are keen to see João Félix move to Stamford Bridge instead of Omorodion -- the Portugal international spent six months on loan there in 2023 -- and the forward's agent, Jorge Mendes, is now in talks with Chelsea.

Atlético's bid to sign forward Julián Álvarez from Manchester City is not in danger as a result of the change of plans, sources said.

Sources gave ESPN conflicting reasons as to why Chelsea had changed their minds over signing Omorodion, 20.

The forward was part of the Spain under-23 squad that won gold at the Olympic Games in Paris last week, scoring once in four appearances.

Atlético have been looking to implement an ambitious rebuild of their squad this summer. They have signed centre-back Robin Le Normand from Real Sociedad and forward Alexander Sørloth from Villarreal, and are looking to add Argentina star Alvarez and England international Gallagher.

However, Gallagher's switch to Madrid -- Atlético confirmed on Friday that the midfielder was in the Spanish capital as they worked on closing a deal -- was conditional on Omorodion moving in the other direction. Chelsea will now not be moving forward with Omorodion's signing, and Atletico are working to ensure that the Gallagher transfer does not also fall through. João Félix -- who spent last season on loan at Barcelona -- is seen as a possible alternative.

On Sunday, Chelsea announced the arrival of wide forward Pedro Neto from Wolves, their latest signing in a busy summer.

Atlético signed Omorodion from Granada in August 2023, and immediately sent him on loan to Alaves for the 2023-24 season. The highly rated Spain youth international is yet to feature for Diego Simeone's side. The LaLiga season begins this coming weekend, with Atletico travelling to Villarreal on Monday, Aug. 19.