Chelsea pulled out of the race to sign Sporting Lisbon’s Manuel Ugarte after rivals Paris Saint-Germain offered the player a €10m a year (£166,000 a week) salary, according to Record.

The Uruguayan looked set to complete a move to Stamford Bridge but the last-minute intervention from PSG to increase the wage on offer has seemingly led to negotiations collapsing over the €60m (£52m) transfer.

Ugarte was believed to be a key target for Mauricio Pochettino, and the failure to land the midfielder will be seen as an early blow for the club’s new manager.

It looks as though Chelsea weren’t prepared to go toe-to-toe on personal terms, which is probably understandable, considering they are not in the Champions League next season and have Financial Fair Play rules to consider.

Who will Chelsea target instead of Ugarte?

The Blues were already considering a move for Brighton’s Moises Caicedo and it is now expected that they will step up their plans to snap up the Ecuadorian international.

However, there will be complications in getting a deal done. The midfielder is expected to cost in excess of £75m, while they may have to see off competition from the likes of Arsenal.

Other players are also in the club’s sights. Southampton’s Romeo Lavia, who was also a target last summer, is expected to come back on the radar, while a move for Borussia Monchengladbach Manu Kone can’t be ruled out either. Both players are, though, also wanted by Liverpool.

Efforts will be stepped up following the failure to land Ugarte as Pochettino is reportedly keen to sign, at least, two holding midfielders. Doubts over the future of N’Golo Kante and the impending departure of Mateo Kovacic (who looks set to join Manchester City) have placed extra pressure on adding numbers in that area of the pitch.