Watson's new deal ties her to Chelsea until the summer of 2025. She will now continue her development at Crystal Palace, who currently occupy top spot in the Barclays Women's Championship after an unbeaten start to their campaign.

Chelsea Women general manager Paul Green said: ‘We see this as a good opportunity for Lucy after getting back to full fitness following her injury.

'It will allow her to get regular minutes in a competitive league to continue her development. We look forward to seeing her have a successful season with Crystal Palace.’

Watson signed a two-year contract when she joined Chelsea from Sheffield United in July 2022. She made her debut for the Blades at the age of 16 after signing halfway through the 2019/20 season from Doncaster Belles, where she made her first-team debut aged 15.

Having joined the Blues ahead of the 2022/23 season, Watson secured a loan move to Charlton Athletic. However, her time with the Addicks was cut short when she suffered a ruptured anterior cruciate ligament in August.

On the international stage, Watson earned regular caps for England at both Under-17 and Under-18 level, and received her first call-up to the Under-19s squad in June 2021 at the age of 17. She went on to feature in the 2022 Women’s European Under-19 European Championship in the Czech Republic.

Everyone at Chelsea would like to congratulate Lucy on her new contract and we wish her every success during her time on loan with Crystal Palace.