According to the Portuguese newspaper Record, Chelsea has withdrawn from the race to sign Sporting midfielder Manuel Ugarte.
The Blues have been competing with PSG for Ugarte's signature ahead of the start of the summer transfer window, and have held extensive talks with the player's representatives in recent weeks.
Chelsea and PSG are both willing to meet Ugarte's €60 million (£52.2 million) buyout clause in his contract with Sporting.
The Blues have been competing with PSG for Ugarte's signature ahead of the start of the summer transfer window, and have held extensive talks with the player's representatives in recent weeks.
Chelsea and PSG are both willing to meet Ugarte's €60 million (£52.2 million) buyout clause in his contract with Sporting.
But it appeared that the Uruguay international was favouring a move to the Premier League.
However, PSG vastly improved their initial contract proposal and Chelsea are now unwilling to match the offer from the French Ligue 1 champions.
The report added that PSG’s contract offer jumped from €5million (£4.3m) to €10million (£8.6m) per season.
Meanwhile, Chelsea had medical tests booked for Ugarte as they were confident that the player would reject a move to PSG.
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