World Cup winner Andre Schurrle has failed to live up to expectation since returning from Brazil last summer.
Schurrle has been sidelined for much of this season as Jose Mourinho looks to solidify an attacking midfield of Eden Hazard, Oscar and Willian.
The Blues are understood to be ready to see the winger out of the club this month, with Borussia Dortmund interested however it is Bundesliga rivals Wolfsburg who currently lead the race.
Wolfsburg are willing to spend as much as £27.5m to bring in the 24 year-old and Chelsea will use this money to fund the purchase of Fiorentina star Juan Cuadrado.
The Colombian is reportedly in talks with the west London club and Mourinho is thought to be accepting of paying the player’s £26.5m release clause with Schurrle’s impending departure.
By Phil Wellbrook
