Blues’ owner Roman Abramovich sees the Colombian forward as the perfect man to guide the club into a new era, and is keen to ward off interest from rival parties such as Manchester City.
If a deal can be reached with Atletico, the 26-year-old will pocket £10m-per-year and become the Stamford Bridge outfit’s automatic first-choice forward.
The club’s current top earner is Fernando Torres, but the salary being projected would heavily outweigh that of the Spaniard.
Chelsea’s management team are said to have grown increasingly frustrated by Torres’ failure to match the expectations that came with his £50m price-tag and are looking to bring in a guaranteed source of goals.
Falcao’s record would suggest that he would be the man to offer such a threat, having struck 19 times already this season.
Prior to signing with the Madrid club, the South American had averaged better than a goal every other game with Porto and helped them secure Europa League victory.
He is unlikely to come cheap, with many sources suggesting that his current employers would demand a fee in the region of £45m.
Such an offer would almost certainly be accepted, with 50% of Falcao’s rights being owned by a private business fund, who stand to make a healthy profit on any move.