The London Evening Standard says the Blues are refusing to be held to ransom by their highly-rated teenage striker, who has demanded a pay rise from £7,000 to £50,000 a week to stay at Stamford Bridge, as well as promises of regular football.
The 19-year-old's contract expires in the summer, although Chelsea will be entitled to compensation worth at least £8m due to rules regarding academy-trained players leaving before the age of 24.
It is understood that Solanke, who has been at Chelsea since joining their Under-8s side, has been telling friends he is going to sign for Liverpool, although the Merseyside club claim they are not interested.
Chelsea and Solanke's representatives are no closer to agreeing a deal and, significantly, the player has yet to be involved in the FA Cup, where Chelsea have a fifth-round tie at Wolves tomorrow. Instead, he has been relegated to playing in the U-23s, where he has scored twice in his last three games.