Chelsea pull out of Manuel Ugarte race due to issues over transfer fee - with PSG leading the way to land Sporting midfielder

• Chelsea & PSG both keen
• Chelsea offer more than release clause
• PSG present an even bigger offer

WHAT HAPPENED? Premier League heavyweights from Stamford Bridge appeared to be closing in on a deal for the Uruguay international after putting in an offer that matched his released clause. The Blues were also willing to cover the solidarity payments that will go to the other clubs that helped train the highly-rated 22-year-old.

THE BIGGER PICTURE: Having failed to qualify for the Champions League next season, Sporting must sell players to raise funds and have accepted that Ugarte will leave amid intense interest from outside of Portugal. Chelsea hoped that they would be the ones to acquire the South American’s obvious potential, but Fabrizio Romano claims that PSG have moved back to the front of the recruitment queue.

AND WHAT'S MORE: Ugarte has previously reached a verbal agreement with the Ligue 1 champions over a five-year contract, and may now put pen to paper at Parc des Princes. That is because PSG have presented an offer that is worth even more than Chelsea’s, with the Blues refusing to be dragged into a bidding war.

IN THREE PHOTOS:

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WHAT NEXT FOR UGARTE? Chelsea, with new boss Mauricio Pochettino looking to put his stamp on a squad that has seen £600 million ($745m) invested in it across the last two transfer windows, must now turn their attention elsewhere as they seek to add even more options to their engine room – with World Cup winner N’Golo Kante approaching the end of his contract at Stamford Bridge.