The Slovenian star impressed the Chelsea scouts after scoring in the 2-0 win over Fiorentina at the weekend.
According to The Daily Mail, Palermo value Ilicic at £25million but Chelsea will face competition from Inter Milan who are hoping to launch a bid for him in the January transfer window.
Under pressure manager Andre Villas-Boas is desperate to turn things around at Stamford Bridge and a big January signing is key.
Source: DSG
