Manchester United have agreed a £75m (85.4m-euro) fee with Everton for Romelu Lukaku, according to widespread reports in the British media.
UK reports say Morata transfer is now off
The Belgium international, 24, is one of the most sought-after strikers in the Premier League after scoring 25 top-flight goals for the Toffees last season.
United manager José Mourinho is out to reinforce his attacking options after the release of Zlatan Ibrahimovic and with captain Wayne Rooney also in line to leave.
Rooney is being heavily tipped for a return to Goodison Park, but the Red Devils' bid to sign Lukaku is expected to take place as an entirely separate deal.
Everton have so far denied any agreement with United.
Talks over a move for Real Madrid's Álvaro Morata had reached an advanced stage, but Thursday's reports say United's pursuit of the Spaniard is now over.
Morata is understood to have agreed personal terms with United, but the Old Trafford side have been unable to match Los Blancos' valuation of the player.
Lukaku to United, Morata to Chelsea?
A Lukaku switch to United would scupper Chelsea's plans of re-signing the Belgian to replace Diego Costa, with the Stamford Bridge side having identified the Anderlecht youth product as their chief target at centre-forward.
However, it could open the way for Morata, a player much admired by Blues boss Antonio Conte, to team up with the coach who took him to Juventus in 2014.