Chelsea pulled out of the battle with PSG for Manuel Ugarte over a contract auction.

The Sporting CP midfielder is set to sign for PSG today, with the Parisians to meet his €60m buyout clause.

Chelsea were favourites to sign Ugarte, but PSG's contract offer far exceeded the Blues' proposal.

The Uruguay international was willing to forego Champions League football next season to join Chelsea.

However, PSG's contract offer proved too good for the youngster to refuse and with Chelsea refusing to compete, Ugarte agreed to move to Paris.