The 22-year-old midfielder has emerged onto the radar of several big European clubs this summer and there is a real race for his signature ahead of the transfer window.
PSG have moved on him in a concrete manner by tabling an offer worth €60m with the Portuguese giants.
The Parisians have also reached a verbal agreement with Jorge Mendes, who is the agent of Ugarte and is trying to engineer his transfer.
But he has serious Premier League interest in him as well and according to French outlet Foot Mercato, Chelsea and Newcastle are now ready to move for him.
The two Premier League sides are interested in taking Ugarte to England and have touched base with the Portuguese giants.
They have informed Sporting Lisbon that they are prepared to match PSG’s bid for the midfielder.
The Parisians are keen to pay the fee in instalments and it remains to be seen whether Chelsea or Newcastle offer Sporting Lisbon more favourable payment terms.
Liverpool are also interested in Ugarte and could be forced to join the bidding war for him in the coming days.