Chelsea recently submitted a €60 million offer for Manuel Ugarte. In addition to that, the Blues have offered David Fofana on loan to the Portuguese club for the next season.
However, the report adds that Sporting CP have now turned down the offer because they are not interested in loaning the Chelsea youngster for the next season.
Chelsea seem desperate to sign that 22-year-old defensive midfielder this summer and it remains to be seen whether they can finalise an agreement soon.
Ugarte has a €60m release clause in his contract but Chelsea were hoping to pay more than that in order to facilitate a transfer swiftly.
Star midfielder N’Golo Kante is yet to pen an extension with the club and his contract expires in the coming weeks.
It remains to be seen whether the Blues can bring in the necessary replacements in the coming weeks.
Newly appointed manager Mauricio Pochettino is reportedly keen on the club to complete the signing of the 22-year-old Sporting CP midfielder soon.
Ugarte has shown his quality in the Portuguese league and in the European competitions this season.
The 22-year-old was outstanding against Premier League clubs Arsenal and Tottenham earlier this season.
He has the skill set to form a quality partnership with club record signing Enzo Fernandez at Chelsea next season.
Given the fact that Chelsea are willing to pay his release clause and the player has a preference towards the move to the London club, it is fair to assume that a transfer will be done sooner rather than later.