The Blues are close to sending Fikayo Tomori on loan to AC Milan and will be looking to sign a replacement for the defender this summer.
According to German outlet TZ, Chelsea will have to compete with Bayern Munich for Dayot Upamecano's signature.
Frank Lampard's side were heavily linked with a move for David Alaba in recent weeks. However, with the Austrian looking set to join Real Madrid next summer, the London club will switch their focus to Upamecano.
Dayot Upamecano has put in a series of impressive performances during his three years at RB Leipzig. His scintillating displays in the knockout stages of the Champions League last season caught the eye of a number of Europe's top clubs.
The 22-year-old was subsequently linked with a transfer to Arsenal or Manchester United, but a move failed to materialise.
His current deal with RB Leipzig runs until 2023, which means that any interested parties will have to meet the Bundesliga club's £50-million valuation of the Frenchman to sign him.
Chelsea have been on a poor run of form in recent weeks. The Blues had an impressive start to their 2020-21 Premier League campaign after a summer of investment which saw them sign seven new players.
Many fans and pundits tipped Chelsea as favourites to win the Premier League title this season, but that opinion has changed after a run that has seen them win just 2 of their last 5 games in the league.
Despite spending in excess of £200 million in the summer, Frank Lampard still believes that Chelsea need to sign more players for them to become genuine title contenders.
Dayot Upamecano has been identified as one of those players.
Dayot Upamecano's potential move to Chelsea could lie in the hands of Fikayo Tomori and Mohamed Simakan
Chelsea will need to offload some players in order to create space in their squad and raise funds for the signing of Dayot Upamecano.
The Blues and AC Milan are close to agreeing on a loan deal for Fikayo Tomori, with an option to buy. However, the Italian giants view the Englishman as a second-choice option and are keen to sign Mohamed Simakan from Strasbourg.
Stefano Pioli's side will, however, face strong competition from RB Leipzig who, according to Sky Germany, have agreed personal terms with the 20-year-old
Fikayo Tomoro's potential transfer to AC Milan and Mohamed Simakan's move to RB Leipzig could pave the way for Dayot Upamecano to join Chelsea.