Chelsea have upped their contract offer to Sporting CP midfielder Manuel Ugarte.

The Uruguay international is a target for several European giants, with PSG and Liverpool also keen.

Ugarte's contract carries a €60m buyout clause, meaning he potentially can be left to choose his next destination himself.

Record says Chelsea initially offered the midfielder a deal worth £2m-a-year.

However, the salary package has now been improved to £3m-a-year plus bonuses. But it still falls short of PSG's £4.3m-a-year proposal.