The 21-year-old has had some good moments in a Chelsea shirt but has struggled to nail down a starting spot with 14 of his 20 Premier League games coming from the first whistle.
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According to journalist Simon Phillips, Chelsea are looking to cash in on Garnacho just a year after he joined from Man United.
Garnacho joined Chelsea for a reported fee of £40 million from Man United last summer after his high profile falling out with Ruben Amorim.
Chelsea now believe there are better left wing options on the market and they could recoup the money they spent on Garnacho.