LYON have made a £10million bid for Everton's Ben Godfrey.
But the French club face competition from Italians Atalanta, who matched the offer on Thursday night.
And Godfrey is set to pick Italy over France by flying with his representatives to Milan on Friday morning to undertake a medical and hold talks over personal terms.
SunSport revealed this month AC Milan and Borussia Dortmund have also shown an interest in the two-cap England star.
Lyon thought they had stolen a march on their rivals by bidding for the 26-year-old, who has 12 months left on his Goodison Park deal.
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But Atalanta, who qualified for the Champions League next season, look set to win the race.
Godfrey joined Everton from Norwich in a £25million deal back in 2020 when Dortmund first registered their interest.
The defender has become a regular at Goodison Park since his arrival.
He has made 93 appearances for the club and picked up 17 yellow cards.
However, last season, he struggled for game time as he only made 15 outings in the Premier League.
The Toffees need to make a sale before the PSR deadline on June 30.
They are not the only club that are trying to beat the deadline to comply with the rules.
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Aston Villa, Chelsea and Newcastle have also been working hard before the official transfer window opens to make sales.
Academy products Tim Iroegbunam and Lewis Dobbin were exchanged between Everton and Aston Villa in £9m deals.
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Villa are also reportedly close to selling teenager Omari Kellyman to Chelsea for £19m.
While the club are also close to sealing a £37.5m deal to sign Ian Maatsen from the Blues.
The fees for the young players have raised eyebrows with concerns being raised that the clubs have found a loophole in the PSR system.
Dominic Calvert-Lewin has also been linked with an exit from Everton with Manchester United and Newcastle interested.
