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The West Londoners plan to add further attacking firepower in the New Year to partner club-record landing Alvaro Morata, who was signed in from Real Madrid in a £70m summer agreement.
The Blues are set to cough up a near nine-figure sum to land Icardi, with The Sun suggesting that Inter will be weak to prevent a mid-season transfer.
The South American Icardi is believed to have a £98.2m release clause in his deal, although the Nerazzurri hope to propose him improved terms before the transfer window opens in January.
But, the same story suggests that Icardi who has 11 goals in 12 Serie A matches this year would opt a move to Real Madrid if the European giants come calling.
Meanwhile, Chelsea have made an offer for Saul Niguez and are set to break the bank for the Atletico Madrid ace.
The 22-year-old has impressed for the Spanish side once again this campaign.
The Spaniard Niguez has scored once and chipped in with one assist in all tournaments under Diego Simeone.
And according to Spanish media agency Don Balon, Niguez is drawing interest from Chelsea.
They say Blues manager Antonio Conte is a great fan of the attacking player.
Don Balon add that Chelsea are set to pay £71m for Niguez at the end of the campaign.
Niguez renewed his Atletico deal in the summer, and the footballer now has a £134m release clause in his contract.
However, Don Balon says Atletico manager Simeone has no interest in offloading his key man.
Atletico have told Chelsea that Niguez is not for sale, with the La Liga side sure there will not be a club ready to pay his £134m buy-out clause.
Conte broke the bank in the summer, splashing around £200m in the transfer window.
The Italian signed Alvaro Morata, Tiemoue Bakayoko, Antonio Rudiger, Davide Zappacosta, Danny Drinkwater and Willy Caballero.
However, the West Londoners have had a hit and missed start to the campaign.
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