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An initial offer of £4 million was rejected by the French side according to French reports.
A spokesman for Blues told the club's official website: "We can confirm newspaper reports that we are looking to sign Senegal's captain Aliou Cisse from Paris Saint-Germain.
"A £4.5 million fee has been agreed with PSG and we are currently in negotiations with the player himself.
"We are very hopeful that a deal will be completed once the World Cup Finals have finished."
Twenty-six-year-old Cisse can play anywhere in defence or as a tough-tackling midfielder.
He spent most of last season on loan to Montpellier after a two-game trial at West Ham United came to nothing.