Chelsea have suddenly gone cold on the signing of Sporting CP midfielder Manuel Ugarte.

The Blues were expected to close a deal for the Uruguay international after agreeing personal terms last week.

But transfer expert Fabrizio Romano is reporting: "Chelsea are pulling out of the Manuel Ugarte race, PSG are now in the lead to sign the player!

"Player was open to Chelsea move — but PSG have offered more and Chelsea are not willing to pay well above what they consider Ugarte's 'market rate'."

Ugarte's contract carries a €60 buyout clause.