Blues want to make Brazilian centre-back their third summer signing from the La Liga champions.
Chelsea’s transfer raid on Atletico Madrid appears to be far from over.
The Blues completed the signing of left-back Filipe Luis from the La Liga champions on Friday for a fee in the region of £15m.
Luis joined international teammate Diego Costa at Stamford Bridge, after the powerful striker had arrived in a £32m switch on Tuesday.
According to the Daily Star, Chelsea are still in talks with Atletico and are plotting a £20m bid for Brazilian centre-back Joao Miranda.
Miranda, who has been capped seven times at senior international level, apparently has a £24m release clause in his contract, which is due to expire in June 2016.
The 29-year-old was a rock at the heart of Atletico’s defence last season.
In 45 starts in La Liga and the Champions League, he was dribbled past just 19 times.
Real Madrid’s Raphael Varane was said to be Jose Mourinho’s first-choice defensive target, but the Chelsea boss has switched focus to Miranda after discovering that the Frenchman is unavailable.
Chelsea are also rumoured to be keen on bringing Atletico midfielder Tiago back to Stamford Bridge.
Tiago, 33, spent the 2004-05 season with the Blues, before being sold to Lyon.
He has also played for Juventus since leaving Chelsea.