The Italian champions had previously said that the Czech Republic international was not for sale at any price, but it is believed that they may now be willing to part with the 28-year-old, with a fee of £20 million being mooted.
Ranieri has already made his first multi-million pound signing at the Stamford Bridge club, securing the services of Danish winger Jesper Gronkjaer from Ajax for £7.8 million, and he is now reportedly set to ask Stamford Bridge chairman Ken Bates to dig even deeper to fund a deal for Nedved.
However, the London club would have their work cut out to persuade Nedved to leave Lazio, as he recently announced that he was thoroughly enjoying his stay at the Italian club.
"This is definitely one of the most happiest periods of my career," he said. "I am in great form, even though I think I could do better."
Nedved has also been linked with a move to England before, with Premiership champions Manchester United believed to be targeting the midfielder after Euro 2000.
