Everton are in talks with Chelsea over a deal for Conor Gallagher.

Sky Sports News has been told Everton have indicated a willingness to pay £40m plus £5m in add-ons to sign the England midfielder permanently.

Gallagher, however, is not interested in a move to Everton.

At this point, everything is on the table for Gallagher - a loan, a permanent switch or staying at Chelsea, but a move away is more likely if the Blues complete a deal for Benfica midfielder Enzo Fernandez.

Newcastle and Crystal Palace are among the clubs who also admire Gallagher, but Chelsea are not keen on loaning him to a club fighting for a similar league position.

If the 22-year-old is loaned out, it is more likely to be to a team in the bottom half of the Premier League.

Gallagher, who was on loan at Palace last season, has made 18 appearances in the top flight this term, scoring one goal and registering one assist.

Anthony Gordon departed Everton on Sunday to sign a long-term contract at Newcastle.

Gallagher could become Sean Dyche's first signing at Goodison Park after Everton appointed the former Burnley boss as their new manager on a two-and-a-half-year contract.

Sky Sports News revealed on Friday that Dyche had been chosen by the Everton board as Frank Lampard's successor, after also holding talks with former Leeds boss Marcelo Bielsa.

Dyche is the seventh permanent manager hired by Toffees owner Farhad Moshiri since he took over the club nearly seven years ago.

Sky Sports News' Mark McAdam:

"Conor Gallagher had that really successful loan last season at Crystal Palace where he scored eight Premier League goals in 35 starts. He's a key player for Chelsea, a key player for Graham Potter, but with all of Chelsea's spending, at some stage, they're going to have to bring something in.

"It's significant because Sean Dyche is now at the helm and he is leading the charge to try and sign Gallagher who he feels could really add to that Everton set-up.

"He's the type of player that Everton fans would want to see go to Goodison Park because not only has he got Premier League experience, he's young, he's exciting, he's on the fringes of being around Gareth Southgate's England squad.

"The fact that Everton are trying to speak to a player of his calibre suggests that they are not going to be messing around in this transfer window."

Who will be on the move this winter? The January transfer window closes at 11pm in England and midnight in Scotland on Tuesday January 31, 2023.

Keep up-to-date with all the latest transfer news and rumours in our dedicated Transfer Centre blog on Sky Sports' digital platforms. You can also catch up with the ins, outs and analysis on Sky Sports News.