Chelsea flop Joao Felix could be forced to settle for a middle-tier Premier League club after becoming the first casualty of Mauricio Pochettino's clear-out. 

The 23-year-old forward, who was on loan at Chelsea last season, is set to leave Atletico Madrid due to his strained relationship with manager Diego Simeone. 

However, the Premier League giants have decided against making Felix's loan move permanent - leaving the Portuguese star in limbo over his future. 

The Blues are prioritising reducing the size of their squad this summer - which has swelled to more than 30 players - and felt Felix was dispensable. 

Therefore, Spanish news outlet Marca are saying Felix - who netted jut four times in 20 appearances - could be forced to settle for a middle-tier club. 

According to Marca, Aston Villa and Wolves have been named as the favourites to sign the 23-year-old forward on loan this summer. 

Villa manager Unai Emery is said to be interested in signing Felix after securing Europa Conference League football for the 2023-2024 campaign. 

Emery was impressed with 23-year-old's initial form at Atletico Madrid and believes he can revive the youngster's career at Aston Villa. 

Meanwhile, Felix's agent Jorge Mendes is said to have a good relationship with the Wolves hierarchy and could push a deal through. 

Felix joined Atletico in 2019 in a mega-money move from Benfica - costing the Madrid-based team £113million. 

However, things didn't work out as he had hoped. Therefore, Felix joined Chelsea on loan in the January transfer window.

During his time Chelsea, Felix netted four times in 16 Premier League games - with Pochettino deciding against signing the 23-year-old on a permanent deal. 

As a result, Atletico offered Felix to Newcastle at the end of May, but the Magpies' appear wary of making a move for a player that struggled in the Premier League.