Caicedo has been Chelsea’s top midfield target this summer and they have failed with multiple bids to sign him from Brighton.
Chelsea believe that they have been making progress in talks with Brighton, who have not moved an inch from their £100m valuation of the player.
Liverpool have now barged into the race for Caicedo and are in talks with Brighton over trying to take him to Anfield.
There is also talk of Bayern Munich being in the mix for the Ecuador midfielder as well, but the German interest has been played down.
The Bavarians are not in the running to land Caicedo and are not competing with Chelsea and Liverpool.
Their priority is to sign a striker and they are now looking to convince Harry Kane to move to the Allianz Arena after agreeing an £86m deal with Tottenham.
The German champions do not have the funds to compete with Chelsea and Liverpool for Caicedo and also sign Kane.
They have not made any contact with Brighton for the signature of the midfielder this summer.
