Sources: Sheffield Wednesday in two-club race to sign Everton's Reece Welch

Sheffield Wednesday and Danish side Horsens are both keen to sign departing Everton defender Reece Welch on a free transfer, sources have told Football Insider.

The 22-year-old is out of contract at the Hill Dickinson Stadium this summer and is set to leave the Toffees at the end of June.

Wednesday and Horsens have both identified the starlet as a player with plenty of promise for the future, and are set to do battle for his signature.

The Owls are looking to strengthen their squad for a promotion push in League One, while Horsens are in the market for a young centre-back to develop.

Welch has been at Everton since the age of 11, and is now set to move on to the next chapter of his career.

He has made four senior appearances for the Toffees and was named on the bench in the Premier League on several occasions in 2025-26.

Welch has been on the verge of a first-team breakthrough at Everton in recent years, but is now on the hunt for a new challenge.

He turned out 12 times for the Merseysiders' U21 team in Premier League 2 last season, and was regularly involved with David Moyes' first-team group.

He could now be about to return to the EFL for the first time since a 2023-24 loan spell with Forest Green Rovers.

Welch made 24 appearances in all competitions that season as the Gloucestershire outfit were relegated to the National League.

The starlet has since had a brief loan spell with Belgian side Deinze, but is now on the move permanently this summer.

Sheffield Wednesday are prepared to offer him the chance to continue his career in England, while Horsens want to hand him a new challenge entirely.

Football Insider also revealed back in May that Bundesliga side Freiburg were weighing up a move for Welch as his contract neared its conclusion.

The German side saw him as a player of promise for the future, but have now slowly withdrawn from the race.

Nevertheless, the Bundesliga interest is a sign of the quality that Welch possesses, and he has already earned England recognition at U20 level.

Sheffield Wednesday are keen to get a deal for him over the line as soon as possible, as Hillsborough could be about to become Welch's new home.