PSG leading race to sign Manuel Ugarte after gazumping Chelsea

The Blues have pulled out of the race to sign the Uruguayan midfielder

Following Paris Saint-Germain making a better financial deal for Sporting midfielder Manuel Ugarte, Chelsea backed away from the transfer.

Ugarte got an impressive bid from Chelsea, and there was rising speculation that the Uruguayan international was going to be Mauricio Pochettino's first acquisition.

Ugarte's current deal has a £52 million release clause. Positive conversations were being had, and it appeared that the Blues were winning.

But PSG have been putting a lot of pressure on the 22-year-old to sign with them, and the French champions won't be outbid on money.

Chelsea's response to this was to end negotiations after determining they would not pay more than the going fee for Ugarte. The claims that they intended to invest in Sporting as part of the acquisition are untrue.

Chelsea are reorganising and prioritising midfield reinforcements after spending about £600 million since the summer of 2017.

Moisés Caicedo of Brighton & Hove Albion is anticipated to be moved by them. Arsenal and Liverpool are also interested in the Ecuadorian international, who will probably cost a minimum of £80 million.

Chelsea intended to purchase Caicedo and Ugarte. Mateo Kovacic is free to contact Manchester City thanks to clearance from Chelsea, which needs to trim its overcrowded roster. While Milan wants Ruben Loftus-Cheek, Manchester United has begun discussions on Mason Mount.

N'Golo Kanté's current contract expires this month, and he has not yet agreed to a renewal. Chelsea sold Jorginho to Arsenal in January, adding the £106.8 million Enzo Fernández to their midfield.

After losing the opportunity to sign Ugarte, Pochettino may turn his attention to other targets, but a Declan Rice signing is doubtful. The West Ham skipper is favoured to join Arsenal.