Celtic have rejected a loan bid from Toulouse for defender Stephen Welsh, according to reliable Sky Sports journalist Anthony Joseph.

The Lowdown: Welsh on the move?

The Hoops are having a good summer in the transfer market, making some key additions as they prepare to start their Scottish Premiership title defence on Sunday.

There are also outgoings that could potentially happen in the coming weeks, however, with Welsh one of those who has been linked with a summer exit.

Now, a fresh update suggests he could still depart before deadline day next month.

The Latest: Celtic reject bid

Taking to Twitter, Joseph confirmed that Toulouse have made a loan bid for Welsh with an option to buy, but Celtic have turned down their initial offer:

"UPDATE: Celtic have rejected a bid from Toulouse for defender Stephen Welsh. It’s understood the fresh offer was for a season-long loan with an option to buy in the region of £3.5m, plus add-ons. Celtic don't want to sell him as he is part of their first team plans."

The Verdict: Sell for the right amount

At 22, Welsh is a very promising young defender with a bright future - he has been hailed as 'superb' by Greg Taylor - so Celtic should only sell if a massive offer comes along.

Granted, he only started nine league games last season but he is someone who provides good competition for Cameron Carter-Vicker and Carl Starfelt, and could mature into a regular starter in years to come.

That being said, if a new challenge appeals to Welsh and Toulouse return with a much-improved bid, Ange Postecoglou may well consider allowing his centre-back to leave, provided he can get a replacement in before the deadline.