Chelsea will hold more talks with Antonio Conte's representatives on Thursday.
Conte has emerged as the frontrunner as Massimiliano Allegri has distanced himself from the situation and Diego Simeone is unwilling to make a decision at this point in Atletico's season.
Conte's deal with Italy expires after Euro 2016.
Chelsea are prepared to offer a salary of £6.3 million per season to Conte.
Guus Hiddink, Chelsea’s interim manager, signed a contract until the summer in December and has lost only one of his 13 games, the last-16 Champions League tie against Paris St-Germain in France last week.