The London Evening Standard say reports claiming Chelsea have already agreed a deal for the 25-year-old are wide of the mark. However, the Blues are interested in the midfielder, who has been one of Spurs' better performers this season.
Paulinho was compared to Chelsea midfielder Frank Lampard on arrival at White Hart Lane, due to his knack of arriving late inside the penalty area and scoring goals, but the South American has only managed to net five times for Spurs in the Premier League goals this season.
Despite his difficult debut campaign in England, Chelsea are keen to bring the creative midfielder, who will start for World Cup hosts Brazil this summer, to Stamford Bridge.
Although Lampard is set to sign a new one-year deal with the Blues, Paulinho is being lined up by the Blues as a long-term replacement for the 35-year-old England international.
Chelsea currently have six players from Brazil on their books - and the Blues' Brazilian contingent could tempt Paulinho to leave Tottenham and join the west London outfit this summer.
However, the temptation of teaming up with the world's best players at Real Madrid could prove impossible for the ex-Corinthians star to resist.