The Telegraph is reporting that the Portuguese is set to raid his former club for the Brazilian midfielder in a big-money January move.
It is understood that Oscar, 25, has informed this Blues teammates that he will be leaving Stamford Bridge this winter to join the Chinese Super League club for a fee of around £60million.
Jiangsu Suning and Guangzhou Evergrande, who are coached by former Brazil boss Luiz Felipe Scolari, have shown interest in Oscar in the past but it appears as though he could be set for a stunning shift to Shanghai.
Oscar has been rarely used by Antonio Conte in recent times and feels there is no way back in to the Italian's plans so will move on in January and earn around £350,000 per week in the Far East.
The ex-Blues colleague of Jiangsu star Ramires would join fellow Brazilians Hulk and Elkeson at the Shanghai Stadium.
The potential exit of Oscar could see Cesc Fabregas stay put at Chelsea for at least the rest of the season.