Earlier this week, it was claimed that the Premier League champions were ready to rival Zenit St Petersbrg for the signing of the Greece international, who has spent the last three seasons at the Serie A giants.
However, according to Corriere dello Sport, the Russian side - managed by Roberto Mancini - have decided to pull out of the race for the centre-back after he failed to show for his medical.
It has been suggested that a disagreement over the wages he would receive at Zenit was the reason for his non-attendance, and it has led to the club ending their interest in signing him.
That leaves Chelsea as favourites to push through a deal for the 26-year-old, who is likely to cost in the region of £30m.
Manolas has made a total of 128 appearances in all competitions since signing from Olympiacos for £10.3m in 2014.