Stamford Bridge club have to up their bid for Stadio Renzo Barbera star.
Palermo are demanding £44million for midfielder Javier Pastore after Chelsea had a £30million offer rejected for the highly-rated playmaker.
The Stamford Bridge re-building project is now fully underway and it is likely the Blues’ owner Roman Abramovich will make another bid for the 21-year-old.
The Argentina international fits into the new mould of player Abramovich is looking for as he is young and hungry for success.
It is hoped Pastore will be able to provide the service for £50million signing Fernando Torres, who struggled to make an impact after joining in January.
Chelsea are due to hold talks with Brazilian forward Neymar of Santos but are still to appoint a permanent successor to Carlo Ancelotti as manager.
Palermo president Maurizio Zamparini confirmed Chelsea made an offer but wants more for the player who scored 11 goals and created five assists in Serie A.
“Chelsea was a club that we had a major offer from for Pastore but it did not reach the minimum figure that we set for a player of his quality,” Zamparini said.
“If someone wants to buy Pastore, the price is £44 million.
“There are five or six clubs also interested, including Man City and big clubs from Spain and Italy but so far there has been nothing from them.”