Assistant manager Roberto di Matteo watched the 19-year-old in action for his country in an friendly against Germany in Stuttgart on Wednesday night.
It is understood that Real Madrid have agreed to trigger the ?40million release clause in his Santos contract but Chelsea remain in the hunt.
Friendly fire: Neymar was on target as Brazil lost 3-2 to Germany in Stuttgart
Big-spending Manchester City, Barcelona and Russian club Anzhi Makhachkala are also keeping tabs on the situation but Neymar has said he wants to play in the Club World Cup in December.
Chelsea have been on Neymar's trail since before Andre Villas-Boas took charge and made an unsuccessful move in January, failing to match the terms of his release clause.
Speedster: Neymar has tremendous pace and plenty of tricks
They were given permission to speak to him a few weeks ago but then the move was thrown into confusion again when Santos claimed they were no longer interested in selling him.
Chelsea's interest has not cooled, however, and Di Matteo's report will determine their next move.
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Source: Daily Mail
Source: Daily Mail