Xabi Alonso’s side are looking for a new left-back following the sale of Marc Cucurella to Real Madrid for a reported £52 million fee.
Rayo Vallecano’s Chavarria, 28, had been their top target, requested by Alonso, had been their priority target for the position.
Chelsea had received encouragement that a deal could be done for £21 million, but the Spanish side are now insisting that he would only be sold should his £42 million release clause be activated.
According to journalist Si Phillips, Chelsea are now looking at alternatives, including now Newcastle star Hall and Sporting’s Maxi Araujo.
It’s understood that Hall had previously told Chelsea that he has no interest in returning to the club this summer, but that hasn’t deterred them.
