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7am Chelsea news LIVE: James set for new deal, Dembele wanted after transfer ban, Ake possible return, Pedro to Villa

FRANK LAMPARD goes into a huge week trying to pick his team up after a tough defeat on Merseyside.

The Blues were beaten 3-1 by a rejuvenated Toffees side – but now face Lille for a place in the Champions League knockout stages.

Meanwhile, away from the pitch, the club have seen their transfer ban lifted, meaning they can now sign players in January – and among those they are targeting are former defender Nathan Ake and Barcelona’s Ousmane Dembele.

And more good news for the Blues, as Reece James is close to signing a new deal at the club.

Follow all the latest from West London below…