The 20-year-old central midfielder has already made 60 senior appearances for Palmeiras in his short career. The Brazilian has also been called up to the national team but is yet to make his debut.
The report suggests that Menino is already a Chelsea player, with both clubs agreeing to a deal worth 13m for the highly-touted midfielder.
Transfer specialist Fabrizio Romano, however, has questioned the authenticity of the report. Romano claims that although the player has been scouted by the Blues, Chelsea are yet to make a substantial offer for the Brazilian.
Important to deal with our first loss together: Thomas Tuchel on Chelsea's shock defeat to West Brom
Chelsea suffered their first loss under manager Thoman Tuchel in a shock 5-2 defeat at home to West Bromwich Albion. The defeat left the Blues uncertain about their place in this season's top four, with a Champions League tie against also a huge concern.
Following the loss at Stamford Bridge, Tuchel reflected on the game and called for togetherness in the dressing room.
"It is our first loss together. It is important to find a way to deal with it together and that everyone knows how I feel as a part of it," Tuchel said. "There were some quick words to calm everybody down and to delay the talks until tomorrow because now it is too emotional. There is too much frustration. It is not productive."
The German manager defended his team selection following the result, claiming that the team was "rusty" and "sloppy" on Saturday.
"This is my responsibility, we are very disappointed because we hate to lose," the Blues boss said. "I went for this selection because of an excellent training session yesterday. I trusted this line-up and I think the line-up was strong enough now in this game."
The Chelsea manager also admitted that there were too many defensive mistakes and that there was no excuse for conceding five goals.
"There is absolutely no need to concede five goals if you're one man down with our quality. But our defending was not of the quality it should be. It is now hard to accept but there is no other solution than to accept it and to move forward," Tuchel added.
Thomas Tuchel will have a lot on his plate now as Chelsea prepare for the business end of the season. The Blues are in Champions League quarterfinal action against Porto over the next few weeks, following which they take on Manchester City in the semi-finals of the FA Cup.