Chelsea have pulled out of the race to sign Sporting Lisbon midfielder Manuel Ugarte, according to transfer expert Fabrizio Romano.

New Chelsea manager Mauricio Pochettino wanted the Uruguayan midfielder at Chelsea to partner club record signing Enzo Fernandez.

Initial reports had claimed Chelsea were close to completing a deal for the 22 year old but Romano has now revealed Chelsea have now pulled out due to PSG now increasing the salary they are offering to the player.

Ugarte was open to Chelsea move as he was keen on playing in the Premier League but PSG have offered more and Chelsea are not willing to pay well above what the club consider Ugarte’s “market rate”.

Romano believes Chelsea will now switch attention to Brighton midfielder Moises Caicedo after pulling out of the race for Ugarte.

According to Portuguese outlet Record which initially reported that Ugarte to Chelsea was a done deal, PSG have increased their salary offer to Ugarte from €5million yearly to €10million.

The Record also adds that Chelsea even had medicals booked for Ugarte after reaching an agreement with both Sporting Lisbon and the midfielder before PSG’s new offer.