Newcastle United and Chelsea are ready to make big bids for Manuel Ugarte, according to a report.

FootMercato journalist Santi Aouna has reported on Twitter that Chelsea and Newcastle United are interested in signing Manuel Ugarte from Sporting Lisbon in the summer transfer window.

The journalist has claimed that both Chelsea and Newcastle have told Sporting that they will pay €60 million (£52 million) in transfer fees for Ugarte.

Aouna has added that Paris Saint-Germain have already offered €60 million (£52 million) for the 22-year-old Uruguay international defensive midfielder.

PSG want to pay the transfer fees in instalments, according to the reporter.

Manuel Ugarte signing a potential coup for Newcastle United
In our view, if Newcastle United are able to sign Manuel Ugarte in the summer transfer window, then it would be a coup for the Premier League.

Chelsea and Paris Saint-Germain are bigger clubs than Newcastle, and one would expect the youngster to pick the Blues or PSG over the Magpies.

Yes, Newcastle will play in the UEFA Champions League next season, but Chelsea have won the Premier League and become European champions in recent years.

And PSG regularly win Ligue 1 and compete for the UEFA Champions League.

So, if Newcastle are able to convince Ugarte to move to St. James’ Park ahead of Chelsea and PSG, then it would be quite a statement from the Magpies.

Alexander Isak is Newcastle’s most expensive signing at £63 million, while Anthony Gordon is their second most at £45 million.

So, if Newcastle pay £52 million for Ugarte, then the young midfielder would become the Magpies’ second most expensive signing of all time.