The Mirror says the 22-year-old is regarded as one of his nationâ€™s top prospects and has also attracted interest from Manchester United and Real Madrid. The Â£10million-rated centre-half fits the bill for Ancelotti as he looks to freshen up an ageing squad.
Captain John Terry has looked vulnerable, and his Âdefensive partner has Âalternated between veteran Ricardo Carvalho and Brazilian Alex. Luiz, who is under contract at Benfica until 2015, would bring youth to the back four and Chelsea had scouts watch him in the Europa League against Hertha Berlin.
Chelsea are also interested in Luizâ€™s club-mate, Angel Di Maria, 22. They have made discreet enquiries about the Argentinian winger .