The Blues chief, 59, was interested in signing the Argentine star from Juventus in the summer having just taken over from Antonio Conte.
However, he missed out on Higuain after AC Milan negotiated a season-long loan deal – costing them £18million – which saw Leonardo Bonucci move the other way.
Milan have an option to buy the former Napoli hitman for £36m in the summer, but may be forced to pull out of negotiations.
The Serie A side are battling Financial Fair Play restrictions and may give up their permanent option on Higuain, according to the Daily Mail.
That would allow Chelsea to swoop and snatch the Juventus man in a bid to finally bolster their attack with their first lethal finisher since Diego Costa left in 2017.
Meanwhile, Milan are reportedly interested in taking £65m-flop Morata from Stamford Bridge, although now formal deal has been laid out on the table as yet.
Higuain scored seven times in his first ten games for Milan but has failed to score in his last seven as the Italian giants have slipped 19 points adrift of Juve.
On the other hand, Morata has scored just seven times in 23 appearances for Chelsea this season – with those stats padding thanks to goals against minnows PAOK and Vidi in the Europa League.
With the Spaniard struggling, winger Eden Hazard has been forced to lead the line at times, while Olivier Giroud scored a stunning free-kick in Europe last week.
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