Chelsea are leading the race to sign Ghana defender Baba Rahman from Augsburg, sources have told ESPN FC.

Manchester City and Arsenal have been credited with an interest in Rahman, but ESPN FC has been told that Chelsea are in pole position to land the left-back.

Chelsea scouts have been alerted to the 21-year-old's talents since his time at Greuther Furth and they have continued to monitor his progress.

Rahman was one of the stars for Augsburg as they finished fifth in the Bundesliga last season, and their president Klaus Hofmann told Sport Bild last month that they would only consider offers over €20 million.

"We are a very healthy club," Hofmann said. "Baba is one of the biggest talents in the world. Nobody needs to call us and offer €20m."

Baba Rahman was a key player for Augsburg as they secured a surprise fifth-place finish last season. Boris Streubel/Bongarts/Getty Images

Earlier this week, Augsburg sporting director Stefan Reuter told Augsburger Nachrichten: "There is nothing new. We are not in contact. There have been no concrete offers for him. It does not concern us at the moment. We are totally relaxed.

"We want to keep our sporting potential at Augsburg, but if extreme sums are offered we will think about it. That's normal but it does not necessarily mean we will sell him."

However, ESPN FC has been told that Augsburg are now resigned to losing Rahman as they accept they cannot compete with what is on offer from Europe's top clubs, and the player has a preference for the Premier League.

Chelsea are in the market for a new left-back as doubts continue to surround the future of Filipe Luis at Stamford Bridge.

The Brazilian left-back struggled to hold down a regular place in Jose Mourinho's side last season and there have been suggestions Luis has failed to settle to life in England.

Atletico Madrid have confirmed their interest in taking Luis back to the Vicente Calderon just one year after selling him, and Mourinho has identified Rahman as his top target to replace Luis should he leave.