Chelsea are reportedly working out a deal with O'Higgins for teenager Cristian Cuevas, with the Chilean club claiming talks are at an advanced stage.
The 17-year-old midfielder is seen as an up and coming player in Chile, and has already represented the Chile U-20 team on several occasions. Cuevas reportedly had a trial with the Blues at the end of last year, and Chelsea were impressed enough to talk to O'Higgins and agree on a deal.
The Blues have offered the Chilean club £2.2 million ($2.6 million), with O'Higgins holding out for £3.4 million ($4 million).
However, according to O'Higgins sporting director Cristian Abumohor, talks have progressed and a deal could be completed soon.
"There was interest some time ago and this interest was reactivated a few weeks ago," Abumohor told Radio Bio Bio.
"The talks are advanced but not finalised yet. We are still discussing some points."
Meanwhile, another South American David Luiz has said he is confident Chelsea can turn their season around, while also refusing to give up on the English Premier League title, despite being 16 points behind leaders Manchester United, with just 13 games remaining.
"In February last year, many people said Chelsea cannot win anything and we won two titles," Luiz told the club's official website.
"Mathematically we can fight for the Premier League, we have the FA Cup to play for and the Europa League is starting next week, and we have a great team and the players to win competitions.
"It is difficult in the Premier League now because we have a big distance to the clubs at the top of the table but we can try and this is my dream, to one day win the Premier League, and in the other two challenges we have the opportunity to win.
"We need the support and I think the team needs to win one or two games and then the confidence comes back.
"I can speak personally for me and for the group -- all the players every day work hard in training to win games."
Luiz said he was happy to return from the injury he suffered during the Capital One Cup semi-final second leg against Swansea.
"It always difficult when you get injured, sometimes you can train because you are okay physically, and sometimes you cannot so you spend that time working in the swimming pool, or doing cardio exercise so you do not lose everything," he added.
"But I am back now and I am happy because I can do what I love, because I love to play football and I will try to help the team with my best.
"I felt okay in the game for Brazil. It was a great game, a difficult game against England and both teams created a lot of opportunities to score goals. It was an amazing atmosphere."
