Welsh made 24 appearances in all competitions for the Hoops during the 2021/22 season, scoring twice, assisting once and earning five cautions.
The 22-year-old was Les Violets’ primary defensive target in this ongoing transfer window to reinforce the heart of their backline.
They made a bid to sign the former Scotland Under-21 international on a season-long loan, with an option to buy set at £3.5m, which was knocked back promptly last week.
Now Toulouse are moving on to other targets, with it being made clear that the defender is in Ange Postecoglou’s plans at Celtic.
Welsh scored the first goal in a 2-0 win over Aberdeen at Parkhead in the Celts’ opening fixture of the current league campaign.
The centre-back found regular game-time hard to come by with the reigning Scottish champions last season but looks set to turn that around this term.
Celtic will be looking for a repeat of last season’s league triumph and will also be participating in the group stage of the Champions League in the coming months.
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