Augsburg have rejected an improved bid from Chelsea for Abdul Rahman Baba.
Chelsea have offered £25 million for the youngster.
The Guardian says Augsburg are holding out for a fee closer to £30m, despite the player already agreeing personal terms with the Blues.
The Ghana international is expected to be a replacement for Filipe Luis who returned to Atletico Madrid after just a single season at Stamford Bridge.
Chelsea have reportedly refused to budge on the fee, but a lack of defensive reinforcements could force the club bend to Augsburg's demands.