The Blues are in search of a new defensive midfielder, and Ugarte has emerged as their primary target.
According to Record, negotiations have commenced with the player’s representatives, and the West Londoners are optimistic about securing the transfer.
Despite not participating in the Champions League next season, the Blues remain confident in their ability to secure the services of the midfielder.
The Uruguayan aspires to play in the Premier League, and Chelsea are eager to capitalise on this aspiration in order to persuade him.
Currently, the 22-year-old has a release clause of €60 million in his contract, but Chelsea intend to offer a higher sum to Sporting.
By doing so, they hope to negotiate an extended payment plan and are even willing to loan one of their players to Lisbon.
Although Liverpool have also been linked with Ugarte, Chelsea may outpace the competition by presenting a more lucrative salary offer.