Reports from Portugal suggest that Chelsea have abandoned their pursuit of Sporting midfielder Manuel Ugarte. The Premier League club had been engaged in a battle with Paris Saint-Germain (PSG) for the signature of the Uruguayan international during the early stages of the summer transfer window. Extensive negotiations had taken place between Chelsea and Ugarte’s representatives over the past few weeks.

Both Chelsea and PSG were prepared to activate Ugarte’s €60 million (£52.2m) release clause in his contract with Sporting. However, it seemed that the midfielder had a preference for a move to the Premier League. Nevertheless, recent reports from A Bola and Record indicate that PSG significantly improved their initial contract offer, causing Chelsea to reconsider their position.

Record states that PSG’s proposal rose from €5 million (£4.3m) to €10 million (£8.6m) per season, whereas Chelsea had already arranged medical examinations for Ugarte, confident that he would reject a move to Paris.

Chelsea, concerned about overpaying for Ugarte, are now seemingly out of the race, leaving PSG as the front-runners to secure the services of the talented midfielder, unless he accepts a considerably reduced offer.

Mauricio Pochettino, PSG’s manager, has personally spoken to Ugarte about a potential move to Stamford Bridge. However, it appears that Chelsea’s new manager will not be able to acquire one of his desired midfield targets.

Chelsea’s decision to withdraw from the pursuit of Ugarte may prompt the club to refocus their efforts on signing Brighton midfielder Moises Caicedo this summer. In the January transfer window, Chelsea made a late attempt to secure Caicedo’s signature, but the bid was rejected, as were multiple offers from Arsenal, including a substantial £70 million bid.