The left-back has been linked with a Premier League move for months and rumours that the Blues were interested in signing him this summer increased in intensity following Filipe Luis' return to Chelsea.
Despite Augsburg chief Jonas Hoffman claiming that the Bundesliga club do not need the money that selling Baba would bring, reports surfaced on Friday that he had been subject to a bid from the Premier League champions.
The Ghanaian defender's agent, Sascha Empacher, confirmed the deal existed and is lobbying for Baba being given the opportunity to sign a deal with Jose Mourinho's men.
"Chelsea made an attractive offer," he told Kicker, denying any contract with Chelsea had been agreed upon. "It is Baba's dream to play for a top club. He would like to take this opportunity.”
Baba would provide competition at left-back with Cesar Azpilicueta, who started the majority of matches for Chelsea in 2014-15.
In his first campaign at Augsburg, Baba featured in all but three games (when he was absent for the Africa Cup of Nations) for the German side.
German news agency SID are reporting that Philipp Max has been lined up as Baba's €4m replacement.
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