The Daily Star carries quotes from Pachuca vice president Andres Fassi who claims Chelsea had an offer rejected for Damm last season - but Chelsea are still keen on the forward.
Damm, who would not require a work permit because he also holds German as well as Mexican citizenship, spent two weeks training with Manchester United having caught the eye of United scouts in the Mexican first division.
The 21-year-old looked set to become the subject of a transfer tug-of-war between Chelsea and United, and Fassi has since confirmed that the Blues did make the first move for the winger.
Stay in Mexico
"I believe that Jurgen has to achieve some important goals in Mexican football," Fassi said. "He has to establish himself first, seek the possibility of being in the national team and then, as he is young, there will be opportunities to leave when the time is right.
"He still has much to do at Pachuca. He needs to meet certain objectives. We thought that when Chelsea made the offer it was not the right moment for him to leave."
Damm signed for Pachuca in 2013 and enjoyed a productive season last term, flashing pace and ability on the right flank of the attack. Spanish side Real Oviedo were also linked with a move.
But scouts from the Premier League giants got their first - Manchester United in particular have a strong presence in North and South America. They most recently signed Guillermo Valera and Angelo Henriquez from Uruguay and Chile respectively.
Back in again?
As Fassi notes, Pachuca were willing to entertain talks regarding the sale of Damm earlier this year. It's believed Chelsea and Pachuca held discussions before the World Cup in Brazil, but a deal could not be reached.
But the Daily Star reports that Chelsea are still plotting a move for the winger, despite Fassi's insistence that Damm would best be served continuing his footballing education in Mexico.