Chelsea join Liverpool in race to sign South American star

Chelsea have reportedly joined Liverpool in the race to sign Sporting Lisbon midfielder Manuel Ugarte.

The London giants bolstered their midfield with Enzo Fernandez and Andrey Santos in January but there are expected to make more signings.

It is now reported by Corriere dello Sport that they have entered the pursuit of Ugarte, who has decided to pursue a bigger challenge this summer.

The 22-year-old has turned down a new contract with the Portuguese club and has his sights on moving on when the transfer window reopens.

Liverpool have already opened talks with his representative but they could now face fresh competition in the form of Chelsea.

The midfielder currently has a release clause worth €60 million in his contract and both clubs may have to pay a similar fee.

However, they could seek to negotiate long-term payments such that they can stay safe from breaching Financial Fair Play limits.

Chelsea in particular are close to receiving sanctions and they are likely to offload several players during the next transfer window.