The Colombian forward has been heavily linked with a move to Real Madrid of late, yet it’s now understood that the Spaniards have pulled the plug on a potential swoop.
Falcao himself only joined Monaco last year in a £50m deal, yet he has long been unsettled on the Mediterranean coast.
As a result a move has been mooted, and now Chelsea and Liverpool are two sides near the front of the queue.
The Ligue 1 heavyweights are understood to be ready to sell for the right price as Financial Fair Play worries hit home, and both Premier League sides could make £40m+ offers by the end of this week.
Chelsea are long-term admirers of Falcao and only just missed out on his signature last summer.
Although they’ve signed Diego Costa and Didier Drogba is recent months Jose Mourinho may be tempted to add another top class player to his ranks.
Liverpool are also in the running with Loic Remy’s move having collapsed and the money from Luis Suarez’s sale burning a hole in Brendan Rodgers’ pocket.