Luiz's Chelsea return leads last day's transfers

Records continued to fall as the deadline for European football transfers (2200GMT) drew closer on Wednesday and new managers at some of the biggest clubs refined their squads with Chelsea set to re-sign Brazilian defender David Luiz.

Fees paid by Premier League clubs passed one billion pounds ($1.31 billion) for the first time, according to financial analysts Deloitte, and local media said Bundesliga clubs have spent over 500 million euros ($557.40 million), another record.

Chelsea agreed to pay the highest reported fee, said to be in excess of 30 million pounds, for the return of Brazilian international defender David Luiz, who left to join Paris Saint-Germain two years ago for 50 million pounds.

The west London club said the Brazilian had yet to agree personal terms and pass a medical but manager Antonio Conte appeared to be close to securing the extra defensive cover he has wanted since starting work at Stamford Bridge last month.

Earlier Conte signed Spanish left back Marcos Alonso from Fiorentina for 24 million pounds.

Sunderland became the 13th Premier League team to set a club record for a player by splashing out 16 million euros on Gabon international midfielder Didier Ndong from French side Lorient.

Promoted Burnley broke their record for the second time in this window by signing Ireland international Jeff Hendrick from Derby County for a reported fee of 10.5 million pounds.

Manchester City were among those clubs trimming their squads under a new manager, Pep Guardiola allowing four senior players to leave on season-long loans.

City's England goalkeeper Joe Hart moved to Torino, French midfielder Samir Nasri joined Sevilla, Ivorian striker Wilfried Bony left for Stoke City and French defender Eliaquim Mangala departed to Valencia.

Another England international, midfielder Jack Wilshere, was hoping to tie up his future with a loan move to Bournemouth, after Crystal Palace also confirmed their interest in him.

Arsenal also released midfielder Serge Gnabry on a permanent transfer to Bundesliga club Werder Bremen.

Algeria striker Islam Slimani of Sporting Lisbon and Newcastle United's France midfielder Moussa Sissoko got permission to leave their national squads to finalise transfers, with Leicester City and Everton their reported destinations.

"Following a record breaking transfer window it is clear that the transfer spending spree has been fuelled by the massive amount of additional funding that the clubs stand to get from the new television rights contract," said Philip Shepherd, a partner at auditors PricewaterhouseCoopers.

"The issue for clubs now is not to respond to the additional funding by spending it all on new players and wages.

"Driving up player price inflation also forces up operating costs to the potential detriment of the long-term sustainability of clubs, supporters and the development of new young players.

"The big difference is that now nearly all the English Premier League clubs can be competitive in the European market for players as no other country has such a lucrative contract spread across the league."