Chelsea are determined to secure a Portuguese club partner.
The London Evening Standard says Chelsea have identified Portugal as a good country in which to buy a satellite team but their offer to purchase a 75 per cent stake in Portimonense has been rejected.
Chelsea have consulted with Portuguese super-agent Jorge Mendes over clubs to consider in his homeland and he is now tasked with finding alternative options, having built a positive relationship with co-controlling owners Boehly and Behdad Eghbali.
The Blues want a club in Portugal to help them sign the best South American talent for less and at a younger age, as they could take advantage of more lenient work permit regulations in the country.
Chelsea also had an approach turned down last year for Brazilian giants Santos.