Antonio Conte was keen to bring the Brazil international to Stamford Bridge during the summer transfer window with Juventus confirming in June they had received a "substantial" offer for the left-back.
That offer from the Premier League champions was said to be worth £55m, but the Serie A champions held firm. The Daily Mail report Chelsea are now ready to increase their offer to £60m and will test the Bianconeri's resolve again in January.
But according to Gazzetta dello Sport, Juventus are now ready to offer Sandro improved terms with bonuses that match those offered to the player by Chelsea during the summer.
Sandro's current deal which runs until June 2020 is said to be worth €2.8m per year. The Italian publication reports Juventus are ready to increase that to €5m as part of a new contract until 2022.
It quotes Juventus managing director Giuseppe Marotta as saying "there is no problem" in talks with Sandro and fully expects him to sign a new deal. Gazzetta dello Sport added confirmation of that new deal could come in November.
While Chelsea made six new signings during the summer transfer window Conte was still left frustrated after missing out on a string of targets. Having already failed in efforts to bring Kyle Walker and Romelu Lukaku to the club, the champions also missed out on signing Alex Oxlade-Chamberlain and Fernando Llorente, who rejected the Blues to instead sign for Liverpool and Tottenham Hotspur respectively.
Doubts over Conte's long-term future in west London have lingered since the summer amid suggestions the Italian coach is frustrated with the lack of support during the transfer window. Backing the manager with more high profile signings like Sandro would go some way in mending that damage.