Chelsea have been priced out of a move for Manuel Ugarte in a setback for new head coach Mauricio Pochettino.
The Argentine had made Ugarte a priority target and was pushing to bring the midfielder to Stamford Bridge from Sporting Lisbon.
However, Chelsea ended their pursuit of the 22 year-old Uruguayan after deciding not to increase their already significant terms to match a wage offer from Paris Saint-Germain.
Both clubs were prepared to meet Ugarte’s £52m release clause and the player was thought to have been keen on a move to Chelsea.
Pochettino was hoping to add both Ugarte and Brighton’s Moises Caicedo to January signing Enzo Fernandez, with the trio forming the basis of Chelsea’s central midfield options.