The 22-year-old defensive midfielder joined Sporting Lisbon in the summer of 2021 on a five-year contract from Famalicao.
And his performances with the Portuguese outfit have put him on the radar of Premier League outfits, including Eddie Howe’s Newcastle, who are claimed to be ready to step up their interest.
But Chelsea are also firmly in the mix for the Sporting Lisbon man.
French outfit PSG are also interested in Ugarte and have already submitted a €60m bid for the 22-year-old.
It has been suggested that both Chelsea and Newcastle will match the bid on offer from PSG.
New Chelsea boss Pochettino is an admirer of Ugarte and it has been claimed that he wants the Sporting Lisbon midfielder at Stamford Bridge.
The Argentine has made his feelings clear to the club and will expect Chelsea to push hard for Ugarte.
Chelsea are now pushing to find an agreement with the Portuguese outfit and it remains to be seen whether Newcastle will be able to lure the midfielder to St. James Park.