Chelsea boss Andre Villas Boas is weighing up signing a player from his former team FC Porto.
The 25 year-old Uruguay international has 32 caps for his country, playing an important part as they won the 2011 Copa America last month.
Pereira scored twice during the group stage of the tournament, and his versatility would be a fine asset for Chelsea.
While unlikely to take Ashley Cole’s left back slot at Stamford Bridge in the near future, Pereira’s ability to play on the left wing would offer Chelsea some valuable – and much needed width.
However, he would not come cheap.
“Falcao and Alvaro Pereira are not heading for the exit door. Only a mad offer could change our decision, but I am confident [of keeping them],” claimed Porto president Pinto da Costa.